Published: 2016-12-16 17:30:00 CET

Kotkamills Group Oyj: STRATEGIC REVIEW OF THE IMPREX BUSINESS

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

16 December 2016, at 6:30 pm (CET + 1)

One of the Group's existing business lines is the Imprex® business line (the "Imprex Business") producing resin-treated core material for high-pressure laminates used in various decorative and industrial applications as well as phenolic resin treated products designed for overlaying of wood-based panels to be used mainly in concrete shuttering and in the transport and construction industries. The Imprex Business is operated by Kotkamills Group Oyj's wholly owned subsidiary Kotkamills Oy and is part of the Group's Industrial Products segment. For the financial year ended 31 December 2015, the turnover of the Imprex Business was EUR 26.0 million, excluding the turnover of L.P. Pacific Films Sdn. Bhd. ("LPPF") of 13.9 million (MYR 60.3 million), the shares in LPPF having been divested in November 2016 (the "LPPF Disposal"). Additional information on the LPPF Disposal is set out in Kotkamills Group Oyj's stock exchange release of 18 November 2016.

Following the LPPF Disposal, Kotkamills Group Oyj has continued to take steps to improve liquidity, performance and profitability of Kotkamills Oy by optimising and developing existing operations. As part of such efforts, Kotkamills Group Oyj has initiated a strategic review process concerning the Imprex Business for the purposes of evaluating strategic options with respect to the Imprex Business, 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 Imprex Business 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 Imprex Business. 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. 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


Kotkamills - Consent Request.pdf