PRF: Saaremere Kala AS, subsidiary of AS PRFoods, acquired the majority share in Osaühing REDSTORM

On 3 July 2018 Saaremere Kala concluded the contract for the acquisition of the majority of shares (51%) of 2040 euros in Osaühing REDSTORM (registry code 11228060). Osaühing REDSTORM operates in Saaremaa. The fields of the activities of the company are the fish farming and processing and its storage. Pursuant to the conclusion of the transaction Saaremere Kala AS, subsidiary of PRFoods, owns 51% (the share of 2040 euros) and Osaühing Fodiator 49% (the share of 1960 euros) of the share capital of Osaühing REDSTORM (share capital is 4000 euros). The date of conclusion of the transaction is 6 July 2018.

The aim of the acquisition of the share by Saaremere Kala AS is the establishing of fish farm in Estonia and its expansion in the future and by that ensuring the availability of quality raw material for the group of AS PRFoods. Osaühing REDSTORM has earlier provided the fish freezing and storage service to Osaühing Vettel belonging to the group of AS PRFoods.

The acquisition of the right to offshore fish farming is an important step in the development of AS PRFoods. Firstly, the group can offer especially fresh local fish to its customers in Estonia and Finland, as the Saaremaa factory of the group is only one hour away from the new fish farm. In addition to quality also important savings on transport shall occur. Secondly, AS PRFoods plans to expand significantly its fish farming potential in Estonia, in addition to its existing fish farms in Finland and Sweden. Fish farming is an environmentally efficient and very high value-added food industry. Estonia has a great potential to develop it both in terms of domestic consumption and export potential.

As a result of the conclusion of the transaction Riho Kilumets and Margus Rebane are chosen the members of the management board of Osaühing REDSTORM on 6 July 2018.

Margus Rebane has been employed as the financial director of the group in Saaremere Kala AS since May 2007 and he is also a member of the management board of Saaremere Kala AS since 2009. Since November 2013 Margus Rebane is further liable for the development and management of fish farms of the whole group of AS PRFoods. Margus rebane belongs to the management boards of the following companies: Saaremere Kala AS, Heimon Kala Oy and Överumans Fisk AB. Margus Rebane owns 11 500 shares of AS PRFoods.

Riho Kilumets has actively participated in the daily management of Osaühing REDSTORM and Osaühing Fodiator within the last three years. Riho Kilumets belongs to the management board of Osaühing REDSTORM, Osaühing Fodiator, Osaühing Politeia, Jaht & Sport OÜ, Guidir OÜ, Jäger OÜ, Mittetulundusühing Veere Vanasadam and Mittetulundusühing Veere Vesi. Riho Kilumets has no shares of AS PRFoods.

In the meaning of clause 7.12 of Nasdaq Tallinn Rules and Regulations this is not a major transaction of acquisition. The transaction does not constitute a transaction with related party and the members of the supervisory board and management board of AS PRFoods and Saaremere Kala AS are not personally otherwise interested in the transaction.

Additional information: Indrek Kasela, member of the management board of Saaremere Kala AS: , e-mail: .

Indrek Kasela

AS PRFoods

Member of the management board

Phone:

E-mail: