OEG sold subsidiary that owns Hilton complex in Estonia
Staff Writer |
OEG group company Jessy Investment entered into an agreement to divest the 100% holding in its Estonian subsidiary Kesklinna Hotelli that owns the hotel and entertainment complex building in Tallinn.
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This is where the Hilton Tallinn Park hotel and the flagship casino of OEG group, Olympic Park Casino, are based in. The buyer is East Capital group company ECB3 Tallinn. The transaction price is 48 million euros.
The aim of the sales transaction is to release capital that has been invested into real estate and to focus on the core business of the group – operating casino and entertainment complexes.
The hotel and casino operations that are in the building are not part of the sales transaction and will continue to be owned by OEG group.
The nominal share capital of Kesklinna Hotelli OÜ is 2,520 euros; the acquisition price of the holding for OEG group was 77,949 euros. The bank loan in amount of 25 million euros taken by Kesklinna Hotelli OÜ will also be returned during the transaction.
After completing the transaction, the non-current assets of OEG group will decrease by approximately 30 million euros and liabilities will decrease by 25 million euros.
The profit from the sales transaction, taking into account transaction-related costs, is approximately 17 million euros.
Completing the transaction is subject to fulfilling customary conditions, including obtaining approval from Estonian Competition Authority, after which payment for the holding will take place.
OEG group companies Olympic Casino Eesti and Fortuna Travel have entered into long-term lease agreements with Kesklinna Hotelli, whereby Olympic Casino Eesti and Fortuna Travel lease the building from Kesklinna Hotelli for operating respectively a casino and a hotel, and make monthly lease payments. ■
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