NEO INDUSTRIAL PLC STOCK EXCHANGE RELEASE 3 April 2013 at 12.00 am
Neo Industrial Group has today signed a sale and purchase agreement on selling OAO Expokabel and ZAO Reka Kabel, the Group’s cable manufacturing companies in Russia. OAO Expokabel manufactures special cables for marine engineering, oil and gas industry, as well as for nuclear power plants. ZAO Reka Kabel is specialized in manufacturing medium voltage cables. The main market area of the companies is Russia, constituting 10 per cent of Cable segment’s net sales in 2012.
Reka Cables Ltd, Cable segment ‘s company based in Finland, will continue selling and marketing Finnish-made cables in Russia and CIS countries through its subsidiary in Russia. The agreement has no effect on the operation of Reka Cables Ltd.
The transaction is expected to be finalized during May and having simultaneously positive influence on the liquidity position of Neo Industrial Group.
Neo Industrial Plc
Jari Salo
Managing Director
For further information, please contact:
Jari Salo, Managing Director, Neo Industrial Plc, tel. +358 207 209 196
Jorma Wiitakorpi, Managing Director, Reka Cables Ltd, tel. +358 207 200 380
www.neoindustrial.fi
Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange. Neo Industrial's business segment is Cable Industry.