Kotkamills Group Oyj: STRATEGIC REVIEW OF MALAYSIAN OPERATIONS Kotkamills Group Oyj STOCK EXCHANGE RELEASE 26 October 2016, at 6:30 pm (CET + 1)
Kotkamills Group Oyj owns, indirectly through its wholly owned subsidiary Kotkamills Oy, all issued and outstanding shares in L.P. Pacific Films ("LPPF"), a Malaysian limited liability company. LPPF operates an impregnating plant in Pasir Gudang, Malaysia, focusing on Imprex® films and core stock. The operations of LPPF are part of the Group's Industrial Products segment. For the financial year ended 31 December 2015, the turnover of LPPF was EUR 13.9 million (MYR 60.3 million). Kotkamills Group Oyj has taken steps to improve liquidity, performance and profitability of its wholly owned subsidiary Kotkamills Oy by optimising and developing existing operations. As part of such efforts, Kotkamills Group Oyj has initiated a strategic review process concerning LPPF for the purposes of evaluating strategic options with respect to LPPF, including a potential disposal. Under the terms and conditions of Kotkamills Group Oyj's EUR 105,000,000 Senior Secured Callable Bonds 2015/2020 (ISIN: FI4000148705), a disposal of shares in LPPF would require a consent from the bondholders in accordance with the terms and conditions of the bonds. A written procedure has on the date hereof been initiated for the purpose of obtaining such consent for the event that Kotkamills Group Oyj would, as a result of the ongoing strategic review process, decide on a disposal of the shares in LPPF. The request delivered to all bondholders is attached hereto.
Kotkamills Group Oyj
Board of Directors
For additional information, please contact: CFO Petri Hirvonen, tel.+358 40 571 0834, petri.hirvonen@kotkamills.com
DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com
Kotkamills Group in brief
Kotkamills is a responsible partner that delivers renewable products and performance to its customers' processes via product innovations created from wood, a renewable raw material. The key brands of the company include Absorbex® and Imprex®, both innovative laminating paper products for the laminate, plywood and construction industries. Moreover, Kotkamills offers ecological, technically sound and visually attractive wood products for demanding joinery and construction. In summer 2016, Kotkamills started up a new board machine producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including the capability to add barriers on-machine. All Consumer Boards material solutions are fully recyclable and repulpable.
Kotkamills has two production sites in Finland, located in Kotka and Imatra, and a subsidiary L.P. Pacific Films for Imprex® production in Malaysia. The majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.
www.kotkamills.com
Disclaimer
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Kotkamills Group Oyj in any jurisdiction.
Attachments
Letter of Nordic Trustee Oy to the bondholders
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