Law Firm TGS Baltic experts Triinu Järviste, Kadri Kallas, and Mari Anne Valberg advised AS Eesti Post on the transaction by which AS Ekspress Grupp and AS Postimees Grupp sell the shares of AS Express Post, which is providing the newspaper delivery service in bigger cities, to Omniva.
According to the contract concluded on 2 March 2022 between AS Ekspress Grupp and AS Postimees Grupp and AS Eesti Post, which is operating under the Omniva trademark, Omniva will acquire 100% of AS Express Post.
The purpose of the transaction is to find a more sustainable business model for the newspaper delivery service. According to Mart Mägi, Chairman of the Management Board of Omniva, the transaction is necessary to maintain the level of quality of the periodical delivery service. “In connection with the changes in the media market in recent years, we can see that merging the companies is the best solution for ensuring a high-quality service for the customers,” added Mägi. Triinu Järviste, the attorney-at-law who advised on the transaction, says that it was a case that required coming up with a solution in cooperation with the client that would be commercially viable and ensure the sustainability of the service which is essential for the State. “We are proud to be able to represent businesses that contribute to the development of Estonia and provide services that are important and useful to the Estonian people,” emphasises Järviste.
Before entry into force of the transaction, it must be approved by the Estonian Competition Authority, which may take up to five months to form its opinion.
TGS Baltic experts Kadri Kallas, Triinu Järviste, and Mari Anne Valberg advised the client on structuring the deal, preparing the transaction documents (incl. contract of sale), and during negotiations. They also represent Eesti Post in concentration proceedings.
AS Express Post, which was established in 1997, is delivering press publications, advertising materials, and business letters in and around the largest cities in Estonia. Express Post also provides a call centre service and subscriber database management service. The company employs almost 490 people, including 450 mail carriers. AS Ekspress Grupp and AS Postimees Grupp held equal shares in the company.
Eesti Post is the largest postal services company in Estonia. Eesti Post is fully owned by the Estonian state. Starting from June 2014, Eesti Post has combined most of its services under the trademark Omniva.
