The Estonian Competition Board issued a merger clearance to the Jõgeva Association of Agricultural Producers to acquire control over dairy producer OÜ Selja, which operates in Pärnu county. The notarised contracts for purchase of shares signed by the buyer and 184 shareholders thereby also entered into force and the buyer became the owner of over 98% of OÜ Selja’s shares.

OÜ Selja is a dairy producer that operates in Tori Municipality in south-western part of Estonia and has over 600 dairy cows. The average milk production per cow exceeds 9,000 kg per year, which is considerably higher than the Estonian average of 7,600 kg per year.

The sales transaction is also unique because of the number of participants involved. For historical reasons there were more than 200 private individuals among the shareholders of OÜ Selja. As the number of shareholders was very large, our firm’s experience in amicably resolving shareholder disputes and finding common interests contributed to making the transaction a success.

Tamme Otsmann Russ Vabamets acted as the legal adviser in the organisation of the auction for the sale of the shares of OÜ Selja, the preparation of the electronic data room and the due diligence procedures. Our lawyers assisted in holding negotiations with multiple bidders and in preparing the sales contracts for selling shareholders. We also advised the acquirer in filing for the merger control notice with the Estonian Competition Board.