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Aspocomp to Sell 80% of Asian Subsidiaries’ Shares |
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Written by Administrator
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Thursday, 08 November 2007 |
HELSINKI – Aspocomp has signed an agreement to sell its holdings in subsidiaries in China and India, as well as certain equipment from its Salo plant, to a new holding company.
Aspocomp will maintain 20% ownership, while 80% of the shares will be sold to Meadville Holdings Ltd., the parent company of the Meadville Group.
Aspocomp’s assets to be contributed to the joint venture are valued at about $113.13 million.
Meadville will pay about $89.63 million for its 80% holding. Aspocomp will use about $58.78 million of this consideration to repay its loan to Standard Chartered Bank in full and about $11.78 million to repay the working capital facilities of its Chinese subsidiary. The balance of the consideration will be used to partially repay Aspocomp's interest bearing liabilities in Finland and to improve its liquidity.
The joint venture may be listed in 2012 at the earliest, the parties agreed.
As part of the agreement, Meadville will acquire 10% ownership of Aspocomp's subsidiary in Oulu, Finland. Aspocomp's holding in its Thai subsidiary will remain unaffected.
The agreement with Meadville is subject to approval; the companies expect to finalize the transaction by the end of this month.
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