Tallinna Kaubamaja Grupp
Liquidation of Selver Latvia SIA
On 8 October 2009, Tallinna Kaubamaja Grupp AS published a stock exchange announcement, in which they announced that they would freeze the activities of Selver Latvia SIA, a subsidiary established for operating on the Latvian retail market. The freezing of activities was brought on by the sudden decline of the Latvian economic environment at the time as well as the fact that the results did not meet the expectations. By the beginning of 2010, all six stores operating in Latvia were closed. After the closing, no business activities have taken place at Selver Latvia SIA.
It has now been decided not to restart business activities in the supermarket segment in Latvia, and the company, which has been non-operational for eight years, will be dissolved. Today, based on the above information, the supervisory board of Selver AS approved the liquidation of Selver Latvia SIA and the deletion thereof from the Register of Enterprises of the Republic of Latvia. The preparations for the liquidation process have been initiated. As the first step in this process, the share capital of Selver Latvia SIA will be increased to allow repaying the loan to the parent company. After the planned increase, the share capital of Selver Latvia SIA will be 284,852 euros, consisting of 2,006 shares with a nominal value of 142 euros. After the increase of share capital is entered into the Register of Enterprises of the Republic of Latvia, Selver AS as the sole shareholder will adopt the decision of dissolving Selver Latvia SIA. Kristi Lomp, current member of the management board of Selver Latvia SIA as well as Selver AS, will be appointed as the liquidator of Selver Latvia SIA.
Considering that no business activity has taken place at Selver Latvia SIA since 2010, the liquidation will have no effect on the activities of Tallinna Kaubamaja Grupp AS. Tallinna Kaubamaja Grupp AS will continue its activities in the Republic of Latvia in the car trade segment through subsidiaries, Forum Auto SIA and Verte Auto SIA, which operate in retail sales of cars. SIA TKM Latvija, a subsidiary of Tallinna Kaubamaja Grupp AS that manages and maintains the real estate and leases the retail spaces owned by the group and located in Latvia, will also continue operations in Latvia.
The dissolution of Selver Latvia SIA is not considered a transaction with connected persons in accordance with the Rules and Regulations of Nasdaq Tallinn. Members of the supervisory board and the management board of Tallinna Kaubamaja Grupp AS have no personal interest in this transaction.
Tallinna Kaubamaja Grupp AS informs the stock exchange about the deletion of their subsidiary, Selver Latvia SIA, from the commercial registry as well as about other important steps pursuant to the procedure provided for in the rules and regulations of the stock exchange as needed.
Chairman of the Management Board
Tel +372 731 5000