PRFoods' Strategic Shift: Disposal of Shares in AS TFTAK and Supervisory Board Changes

In a strategic move, AS PRFoods (PRFoods) has announced the disposal of its shares in AS TFTAK (Toidu- ja Fermentatsioonitehnoloogia Arenduskeskus), a biotechnology research and development company. This transaction, valued at EUR 280,000, represents a 20% stake in TFTAK and corresponds to a third-party valuation. The disposal results in a one-off loss of EUR 138,000 for PRFoods, reducing its balance sheet total. Additionally, the shareholder of PRFoods, Amber Trust II S.C.A., has released the pledge established in its favor, further simplifying PRFoods' balance sheet.



The disposal of shares in AS TFTAK aligns with PRFoods' long-term strategic goals and financial objectives. By divesting from TFTAK, PRFoods can focus on its core competencies in food production and distribution, allocating resources more effectively. The transaction also allows PRFoods to reduce its exposure to biotechnology research and development, enabling it to concentrate on its primary businesses.



The disposal of shares in AS TFTAK has minimal impact on PRFoods' overall investment portfolio and risk management strategy. The transaction is not considered significant, beyond day-to-day operations, or with an associated person. Thus, the impact on PRFoods' consolidated and unconsolidated statements is manageable.

The disposal of shares by PRFoods affects the financial stability and liquidity of AS TFTAK to a limited extent. The transaction corresponds to TFTAK's valuation by a third-party valuator, indicating no significant impact on its financial stability. The disposal does not qualify as a transaction beyond the scope of day-to-day operations, suggesting a routine business decision.

The potential strategic implications of the share disposal for AS TFTAK's business operations and market position are mixed. The loss of a significant shareholder could impact TFTAK's financial stability and access to resources. However, the disposal may also allow TFTAK to focus on its core competencies, potentially enhancing its market position in the biotechnology sector. The changes in the Supervisory Board, including the resignation of Kuldar Leis, may reflect a strategic realignment within the company, with new members bringing fresh perspectives and expertise to guide TFTAK's future direction.

In conclusion, the disposal of shares in AS TFTAK by PRFoods is a strategic move that allows the company to focus on its core competencies and reduce its exposure to biotechnology research and development. The transaction has minimal impact on PRFoods' overall investment portfolio and risk management strategy, and its effect on AS TFTAK's financial stability and liquidity is limited. The potential strategic implications for AS TFTAK's business operations and market position are mixed, but the disposal may ultimately enable the company to concentrate on its core competencies and enhance its market position in the biotechnology sector.