Infortar is a holding company and one of its subsidiaries has concluded the required investment agreement and shareholders' agreement aimed at acquiring a 51 percent stake in OÜ Halinga, a dairy concern based in Pärnu County.

The transaction is subject to Competition Authority (Konkurentsiamet) approval.

Among other things, the final price of the transaction depends on parameters that still need to be specified and will be revealed on the date of completion of the transaction, Infortar announced.

Halinga OÜ is one of the largest milk producers in Estonia and employs over 70 people, with dairy herds plus younger livestock numbering over 3,000 heads of cattle, and cultivated land of 3,700 hectares.

Assuming the transaction goes ahead, OÜ Halinga will then continue with its current activities, but as a member of the Infortar group.

Infortar CEO Martti Talgre said. "Investments in agriculture fit with Infortar's portfolio. This is a capital-intensive field, which has high barriers to entry. We are interested in investing and we have plans, and we can comment more precisely on this transaction and plans after approval from the Competition Authority after the transaction enters into effect."

Infortar operates in five countries including Estonia and owns just over 100 companies.

Its main fields of activity are energy (it owns Eesti Gaas), shipping and real estate, in the latter case with a real estate portfolio of approximately 110,000 square meters

Infortar owns a 42.3 percent stake in AS Tallink Grupp, and also operates in construction and mineral resources, printing, taxi services and other areas.

--

Follow ERR News on Facebook and Twitter and never miss an update!