Kotkamills Group Oyj: DISPOSAL OF MALAYSIAN OPERATIONS
Kotkamills Group Oyj
STOCK EXCHANGE RELEASE
18 November 2016, at 9 pm (CET + 1)
In relation to Kotkamills' strategic review process concerning L.P. Pacific Films ("LPPF"), as described in Kotkamills Group Oyj's stock exchange release published on 26 October 2016, LPPF's sole shareholder Kotkamills Oy has today on 18 November 2016 signed and completed a share purchase agreement concerning the sale and purchase of all issued and outstanding shares in LPPF to Surfactor Germany GmbH. The ownership to LPPF's shares has been transferred to Surfactor Germany GmbH with immediate effect.
The enterprise value (on a debt and cash free basis) of LPPF is EUR 25 million. The purchase price is subject to a closing accounts adjustment, which is not expected to be material. The purchase price is paid to Kotkamills Oy in cash.
Additional information on LPPF and the reasons for the strategic review process and the disposal are set out in Kotkamills Group Oyj's stock exchange release of 26 October 2016.
The disposal improves the Kotkamills group's cash position and operating profit, but Kotkamills Group Oyj does not expect it to have significant impact on issuer's balance sheet.
Kotkamills Group Oyj
Board of Directors
For additional information, please contact:
CFO Petri Hirvonen, tel.+358 40 571 0834, email@example.com
Nasdaq Helsinki Ltd
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.
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.