Group’s Finnish subsidiary purchases Finnkumu Oy

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| Source: Harju Elekter
multilang-release

Estonia, 2014-06-17 13:30 CEST (GLOBE NEWSWIRE) --  On 17 June 2014, Satmatic Oy, a subsidiary of AS Harju Elekter in Finland, signed a contract for the purchase of all shares in Finnkumu Oy, Finland’s largest pre-fabricated substation producer. After the transaction, Finnkumu Oy will continue to operate under its own name and brand as a wholly-owned subsidiary of Satmatic Oy. By purchasing Finnkumu Oy, the Group will increase our market share in Finland as well as elsewhere in Scandinavia and increases the product range.

Simo Puustelli, Managing Director of Satmatic Oy, was appointed Chairman and Endel Palla, Andres Allikmäe, Ülo Merisalu (Managing Director of AS Harju Elekter Elektrotehnika) and Matti Ollila was appointed Member of the Management Board of Finnkumu Oy. Matti Ollila will also continue as a Managing Director of Finnkumu Oy.

The transaction took effect on 17 June 2014, which is also when accounts were settled. For the purchase transaction, EUR 6,575 thousand was paid. Pursuant to the contract, after the audited annual report is approved, in 2015 an additional 50% of the company’s operating profit in 2014, and in 2016 an additional 40% of the company’s operating profit in 2015 shall be paid to the sellers. The purchase transaction was funded out of the own funds of AS Harju Elekter.

Finnkumu Oy, financial summary 2011–2013       
1000 euros 2013 2012 2011  
Cash and cash equivalents 820 413 512  
Securities 374 174 155  
Trade receivables 811 935 389  
Inventories 1 504 925 532  
Non-current assets 43 32 31  
Total assets 3 552 2 479 1 619  
Current liabilities 804 834 327  
Equity 2 748 1 645 1 292  
   incl. share capital 24 24 254  
Revenue 10 391 6 634 4 126  
EBIT 1 626 884 419  
Net profit 1 250 664 273  
Basic earnings per share (EUR) 511 271 108  
Number of shares 2 448 2 448 2 540  
Dividend per share 88 60 45  
               

Since the end of the previous financial year there are no significant changes in the Finnkumu’s business activities. We confirm that there are no valid contracts between Group’s enterprises and Finnkumu Oy, and Finnkumu Oy has no loans or any court or arbitration proceedings involving the commercial undertaking.

Satmatic Oy is the leading producer of automated industrial equipment and the importer and distributor of the Group’s products in Finland. The company’s headquarter located in Ulvila and plants in Ulvila and in Kerava. In 2013, the enterprise’s turnover amounted to EUR 19.7 (2012: 21.3) million, and there are 76 employees working in the enterprise.

Harju Elekter is the leading MV/LV electrical and engineering devices producer in the Baltic States as well as well-known and respected in Scandinavia. Harju Elekter Group includes manufacturers of electrical equipment in Estonia, Finland and Lithuania: AS Harju Elekter Elektrotehnika (100%), Satmatic Oy (100%) and Rifas UAB (63%), as well as the telecommunications products manufacturer AS Harju Elekter Teletehnika (100%) in Estonia. In addition, AS Harju Elekter has a holding in the affiliated company AS Draka Keila Cables (34%) and financial investments in the Latvian electrical equipment sales company SIA Energokomplekss (14%) and in the Finnish publicly listed company PKC Group Oyj (5%).

The transaction does not constitute a transaction between related parties within the meaning of NASDAQ OMX Tallinn’s Rules and Regulations. The management board and the supervisory board members of AS Harju Elekter are not personally interested in this transaction in any other way.

Andres Allikmäe
Managing Director/CEO
+372 674 7400

Additional information: Andres Allikmäe, Managing Director of AS Harju Elekter; Endel Palla, Chairman of the Supervisory Board (+372 674 7400).

Prepared by:
Moonika Vetevool
Corporate communication and investor relations manager
+372 671 2761