Tallinn, Estonia, 2014-08-05 16:01 CEST(GLOBE NEWSWIRE) -- A subsidiary of AS Merko Ehitusgroup, SIA Merks, signed an agreement for the transfer of 25% holding (275 thousand shares) in the joint venture SIA Zakusala Estatesfrom the current co-shareholder AS Tritan Groupon 5 August 2014. After the acquisition of the majority share, SIA Zakusala Estateswill become a 75% subsidiary of SIA Merks. The share capital of SIA Zakusala Estatesis EUR 1.6 millionof which SIA Merks and AS Tritan Groupcurrently have an equal share of 50% with the nominal value of EUR 0.8 million. The additional 25% holding was acquired with the purpose of gaining a greater control over the assets and the management of the company. The principal area of activity of the real estate company SIA Zakusala Estatesis the development of approximately 126 thousand square meters land located on the island Zakusala on Daugava river in Riga. With the increased control the group will be better positioned to lead the overall future development of the project. This is a long term investment for AS Merko Ehitusgroup. According to the agreement SIA Merks will pay for the additional 25% holding the purchase price of EUR 0.7 millionby assigning the corresponding part of a loan given by SIA Merks to SIA Zakusala Estates, to AS Tritan Group. The transaction is not to be treated as a significant transfer for the purposes of the “Requirements for Issuers” section of the NASDAQ OMX Tallinn Stock Marketrules, and is also not to be considered a transaction with a related party. As a result of the share acquisition, the transaction will not have any impact on the consolidated profit of AS Merko Ehitusgroup. Due to consolidation of the SIA Zakusala Estatesgoing forward, there will be an increasing influence on assets and liabilities of approximately EUR 0.8 millionand EUR 1.1 millionrespectively. AS Merko Ehitusconfirms that neither SIA Merks’s nor AS Merko Ehitus’s management board and supervisory board members are in any way personally interested in the transaction. AS Merko Ehitus(http://group.merko.ee) comprises the leading Estonian construction company AS Merko Ehitus Eesti, the Latvian market based SIA Merks and the Lithuanian market based UAB Merko Statyba as well as the group’s real estate development business unit together with companies holding real estate properties. As at the end of 2013, the group employed 860 people and the 2013 revenue amounted to EUR 262.7 million. Signe KukinGroup CFO AS Merko EhitusTel: +372 650 1250 E-mail: email@example.com Copyright © 2014 OMX AB (publ).