Circuit Court upholds unblocking of the shares of AS Kalev's subsidiaries

On 8 January 2009, Tallinn Circuit Court passed a ruling, fully dismissing the
appeal filed by AS Alta Foods against the Harju County Court ruling of 9
December 2008. 
In December 2008, AS Alta Foods appealed the Harju County Court ruling, which
cancelled the prohibition on disposal of the shares of AS Kalev's subsidiary AS
Kalev Paide Tootmine (which, in turn, owns the shares of AS Tere, OÜ Põlva Piim
Tootmine and AS Valmetek Invest) and fully unblocked the shares. The court
cancelled the prohibition on disposal of the shares of AS Kalev Chocolate
Factory, retaining a 15% block on the shares of AS Kalev Chocolate Factory. The
court ordered AS Alta Foods to deposit with the court, by December 19, 5
million kroons as security for the potential damage to AS Kalev in connection
with the block on disposal of 15% of the shares of AS Kalev Chocolate Factory. 
With today's ruling, the circuit court took the position that the claims raised
by AS Alta Foods in it appeal provided no grounds for cancelling the county
court ruling. The circuit court found that the blocking of 15% of the shares of
AS Kalev Chocolate Factory is sufficient for securing the alleged claim of AS
Alta Foods. The circuit court also ordered AS Alta Foods to make a
5-million-kroon security deposit to the bank account of the Ministry of Finance
within 20 days after the entry into force of the ruling. Should AS Alta Foods
fail to deposit the funds, the court will fully dismiss the security on the
claim (i.e. unblock the remaining 15% of the shares). 
The Tallinn Circuit Court ruling may be appealed to the Supreme Court within 15
days. 
(See also AS Kalev's press releases from 24 November 2008 “ AS Kalev to contest
blocking of subsidiary's shares” and 9 December 2008 “Shares of AS Kalev's
subsidiaries unblocked by court”). 

Allan Viirma
Head of legal service
Telephone: 688 6616