Elite Asset Management Plc has made an indicative offer according to which Orava Residential REIT Plc be transferred to a non-UCITS fund managed by Elite's subsidiary

Elite Asset Management Plc, Company Announcement, 20 September 2017, 1:46 p.m. (EET)

Elite Asset Management Plc has made an indicative offer according to which Orava Residential REIT Plc be transferred to a non-UCITS fund managed by Elite's subsidiary

As Orava Residential REIT Plc ("Orava") has announced today, Elite Asset Management Plc ("Elite") has made an indicative offer according to which Orava Residential REIT Plc be transferred to a non-UCITS fund managed by Elite's subsidiary.

Key content of Elite's indicative offer is as follows:

• Elite proposes that the Board of Directors of Orava Residential REIT Plc would decide to transfer the housing assets of Orava in their current state, including all assets and debt, against a contribution in kind to a non-UCITS fund (hereinafter 'ESR') established for this arrangement and managed by an Elite subsidiary. If necessary, Elite is prepared to reorganise the finance of Orava Residential REIT.
   
• If actualized, the proposed arrangement would result in Orava's shareholders to receive approximately 92% of the net value of Orava's current housing stock. For the purposes of the transfer, the fair value of the housing assets would be determined by at least two independent real estate assessors approved by the Finland Chamber of Commerce. The estimated figure 92% is based on a preliminary calculation of the taxes and costs related to the arrangement.
   
• Elite proposes that the Board of Directors of Orava convene an extraordinary general meeting to decide on delisting Orava and dissolving the company. In the dissolution, Orava's shareholders would receive ESR units in proportion to their share holding and continue as housing investors in the liquid non-UCITS fund where redemption will take place in accordance with the fund's prospectus.
   
• The indicative offer requires the permissions and the approval of relevant authorities.

According to the announcement of Orava, the independent members the Board of Directors of Orava Residential REIT Plc will examine the inexpensiveness and feasibility of the indicative offer together with their financial and legal counsel. At the same time, the independent members the Board of Directors of Orava continue to search for other potential competitive offers and other possibilities as well as ways to develop Orava's independent activities in the way that would lead to the best possible result for all the shareholders. Elite will announce the possible further negotiations between Elite and Orava and the result of the offer separately.

ELITE ASSET MANAGEMENT PLC
Board of Directors

Further information:
Elite Asset Management Plc

Kari Juurakko, Chairman of the Board
+358 50 582 7411
kari.juurakko@elitevarainhoito.fi

Certified Advisor Merasco Oy
Telephone: +358 9 6129 670

Elite Asset Management Plc is a profitable and growing investment service company offering versatile and high-quality asset management services for both consumer and professional investors. Elite Asset Management Plc is listed on the First North Finland market maintained by NASDAQ Helsinki (Helsinki Exchanges). Elite Asset Management Plc is the parent company of the Elite Group (Elite). Elite's customer base consists of individuals and corporations that the company serves nationwide in 14 different locations. The first company belonging to the current Elite Group was founded in 2000. Elite employs 105 investment professionals and over 40 tied agents. On behalf of its clients, the company manages assets of approximately EUR 3 billion in total. Check out Elite's services at www.elitevarainhoito.fi.

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