AS Ekspress Grupp is turning to arbitration to acquire the shares of AS Ajakirjade Kirjastus and AS SL Õhtuleht and withdrew from buyout of AS Express Post 13.12

Today, AS Ekspress Grupp informed AS Eesti Meedia that as AS Eesti Meedia has breached the shareholders agreements between the parties and hence hindered AS Ekspress Grupp from acquiring the shares of parties’ joint venture companies, AS Ekspress Grupp shall recourse to court to protect its rights. AS Ekspress Grupp also withdrew from the buyout of shares of AS Express Post, the joint venture of the parties, for the same reason. In the lawsuit that will be submitted to the arbitration at first opportunity, AS Ekspress Grupp requires among other things contractual penalties for breaching the agreements in the sum of at least 3,500,000 euros from AS Eesti Meedia. 

AS Eesti Meedia has been hindering the fulfilling of the buyout rights of AS Ekspress Grupp ever since the right to buy out the shares arose, claiming that AS Ekspress Grupp does not have the right of buyout, presented unlawful claims and unsubstantiated accusations about breaching the shareholders agreement to AS Ekspress Grupp, behaved contrary to good business practices in the questions concerning the governing bodies of AS Ajakirjade Kirjastus and made steps to hinder granting the permission for transaction by the Estonian Competition Authority. Disregarding the fact that AS Ekspress Grupp has done everything in their power to enable AS Eesti Meedia fulfil their contractual duties, they have not succeeded today. Also, disregarding the numerous attempts from AS Ekspress Grupp, a constructive dialogue with AS Eesti Meedia has not been reached in order to find possibilities for fulfilling mutual responsibilities the correct way deriving from the law and the shareholders agreements. In this situation, AS Ekspress Grupp does not see any other possibility than to recourse to arbitration in order to enforce the shareholders agreement between AS Ekspress Grupp and AS Eesti Meedia with the help of the judicial system. 

Together with the notice, AS Ekspress Grupp presented AS Eesti Meedia another proposal to solve the disagreements outside the court. We are hoping that the withdrawal of AS Ekspress Grupp from the buyout of AS Express Post as a strategically important enterprise for AS Eesti Meedia will enable AS Eesti Meedia to find a way to the solution in the differences of opinion outside the courtroom.

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