Restructuration of the Group and establishment of subsidiaries

With the aim of reorganising the structure of the companies of Tallinna Kaubamaja Grupp, splitting up retail sale and wholesale of beauty products and footwear into separate companies, and developing financial services that support retail trade, the Group’s subsidiaries will be restructured and three new subsidiaries will be established as set out below.

Merger of Selver AS and ABC Supermarkets AS

In order to harmonise the management function and increase synergies, a plan has been put in place to integrate the activity of the Group’s supermarkets through a merger whereby ABC Supermarkets AS (the company being acquired), which fully belongs to Selver AS (the acquiring company), will be acquired by the latter. Selver AS, a subsidiary of Tallinna Kaubamaja Grupp AS, is a chain of supermarkets and hypermarkets operating in Estonia that primarily sells food and staple goods. The Selver chain, which has been operating since 1995, consists of 54 stores, of which 22 are located in different districts of Tallinn, and an e-store with the largest servicing area in Estonia. As a result of the purchase of shares of ABC Supermarkets AS on 29 May 2020, the chain acquired sixteen Comarket stores in Harju County, Pärnu County, and Tartu County, two Delice food stores in Viimsi and Pärnu, and the Solaris Food Store.

After the merger has been entered into the commercial register, the sixteen Comarket stores will be gradually brought under the Selver trademark by the end of 2020. The Solaris Food Store will continue to operate under the Solaris Food Store trademark and the two stores in Viimsi and Pärnu doing business under the Delice trademark will retain the Delice trademark.

Kristi Lomp, current member of the management board, will continue as a member of the management board of Selver AS. Andrus Põld, a current member of the management board of ABC Supermarkets AS, will become the manager of Selver’s small formats. The supervisory board will continue with members Andres Järving (Chairman), Jüri Käo, Enn Kunila, and Raul Puusepp.

Separating retail sale and wholesale of cosmetics

The strategic objective of the Group is the continued development of the wholesale function along with retail trade and the expansion of the selection of imported trademarks. The main field of activity of OÜ TKM Beauty, a subsidiary which is solely owned by Tallinna Kaubamaja Grupp AS, is the retail sale and wholesale of cosmetics products in two L’Occitane stores. OÜ TKM Beauty has a subsidiary, OÜ TKM Beauty Eesti, which is involved in the retail trade of cosmetics products in Estonia and manages the I.L.U. store chain of beauty products. Currently, three stores operate in Tallinn (Rocca al Mare, Ülemiste, Kristiine), one in Tartu (Lõunakeskus), and one in Pärnu (Pärnu Keskus).