ARCO VARA AS - NASDAQ OMX Baltic

13 Events after the balance sheet date
Transfer of a shareholding in subsidiaries Bišumuižas Nami SIA and Sportings Riga SIA
Arco Investeeringud and the minority shareholder of Bišumuižas Nami SIA entered into a conditional
Share Purchase Agreement on 18 May 2007 with SIA Linstow Baltic regarding the sale of 50 per cent
of the shares of SIA Bišumuižas Nami. The nominal consideration for the shares is LVL 1,000.
The closing of the transaction is subject a number conditions such as a filing to the Latvian
competition authorities, satisfactory due diligence review by the purchaser and certain further
agreements being negotiated and entered into in a form acceptable to the purchaser. If these conditions
are not met by 30 June 2007, any party may withdraw from the agreement without any liability.
Further, the transaction is conditional on the payment of consideration of EUR 19,220,000 for the
purchase by SIA Bišumuižas Nami of 100 per cent of the shares of SIA Sportings Riga by 30
November 2007. The sellers are entitled to buy back the shares of SIA Bišumuižas Nami for the same
price (LVL 1,000) in the event that SIA Bišumuižas Nami fails to pay in full the purchase price for the
shares of SIA Sportings Riga within four months after the closing.
Following the closing, Arco Investeeringud will own 40 per cent of the shares in SIA Bišumuižas
Nami, with Mr. Viktors Savins owning 10 per cent and SIA Linstow Baltic owning 50 per cent.
Transfer of the Group’s holding in joint ventures Castleberry OÜ and Barrow Investments OÜ
In May 2007, the Group transferred its holding in joint venture Castleberry OÜ and in April, 2007, its
holding in joint venture Barrow Investments. Castleberry OÜ and Barrow Investments OÜ were a
project companies, holding the real estate recognised as inventories and therefore the sales of the joint
ventures are recognised as sales revenue in the income statement and as a change in operating cash
flows in the cash flows statement.
Bonus issue
In May 2007, the Group increased the share capital by way of bonus issue in the amount of 373,311
thousand kroons on account of the company’s equity without making any additional contributions.
During the bonus issue 37,331,113 new shares with a nominal value of EEK 10 were issued.
Acquisitions of minority interests
In May 2007 the Group acquired additional shareholdings of 25% and 20% in the subsidiaries Arco
Vara Puukool OÜ and Arco Real Estate UAB respectively. After the acquisition both companies
became wholly owned subsidiaries of the Group. The transactions had no material effect on the
financial position and financial performance of the Group.
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