Intra-group restructuring and change in the Management Board of a subsidiary

26.09.2022 Market Announcements

In order to harmonise management and increase synergies, AS Harju Elekter will continue the internal restructuring started in 2020 and plans to merge its plants in Estonia, whereby the production of AS Harju Elekter Elektrotehnika and AS Harju Elekter Teletehnika will be merged into a single subsidiary. The merger of Harju Elekter Elektrotehnika and Harju Elekter Teletehnika will allow for significant savings in both production and labour costs, and for a gradual transition to a company based on the LEAN principles.

The assets, rights and obligations of AS Harju Elekter Teletehnika will be transferred in their entirety to AS Harju Elekter Elektrotehnika. The merging companies, Harju Elekter Elektrotehnika as the acquiring company and Harju Elekter Teletehnika as the company being acquired, are both wholly-owned subsidiaries of Harju Elekter. The procedures necessary for the merger to enter into force are expected to be completed during the first quarter of 2023. As a result of the merger, the company will continue to operate under the name of AS Harju Elekter Elektrotehnika.

Based on the above and in order to ensure the smooth functioning of the merger process, Harju Elekter has decided to recall Indrek Ulmas from his position on the Management Board of AS Harju Elekter Elektrotehnika as of 3 October 2022, and to elect Alvar Sass as a new member of the Management Board with term of office three years, until 2 October 2025. Until the merger of the subsidiaries is entered in the commercial register, Alvar Sass will act as the CEO of both Harju Elekter Elektrotehnika and Teletehnika.

Alvar Sass (born 1985) has been a Member of the Management Board of AS Harju Elekter Teletehnika since 2017. Participation in management bodies of companies: Member of the Management Board of Radius Space OÜ; Member of the Management Board of Vientitec OÜ; Member of the Management Board of Justin Time OÜ; Member of the Supervisory Board of the Harju Entrepreneurship and Development Centre Foundation. Alvar Sass owns 15,689 shares in Harju Elekter.

The Supervisory Board of AS Harju Elekter Elektrotehnika will continue in its current composition: Chairman Tiit Atso, Members Endel Palla and Tarmo Kikas.

Harju Elekter is an international industrial group with more than 50 years of experience in the development and production of electrical and automation equipment. Part of the technical solutions of Harju Elekter are aimed at the renewable energy sector, offering complete packages for solar power plants, electric vehicle charging devices, and other related solutions. The Estonian, Finnish, Swedish, and Lithuanian factories employ around 900 people, and the Group’s revenue for the first half of 2022 was EUR 79.2 million. Shares of Harju Elekter are listed on the Nasdaq Tallinn Stock Exchange.

Tiit Atso
Chairman of the Management Board

+372 674 7400