September, 27. 2005
Technopolis signs preliminary agreement on majority holding in Kareltek
Technopolis Plc, a provider of high-tech operating environments, has signed a preliminary agreement with Lappeenrannan Kaupunkiyhtiöt Oy on the acquisition of a majority holding in Technology Centre Kareltek Inc. The agreement concerns 79 % of Kareltek Incs shares. The remaining shares are held by 65 shareholders, to whom Technopolis will later make an offer aimed at achieving 100 % ownership of Kareltek Inc.
The acquisition price will be 79 % of EUR 21.7 million, less Kareltek Incs net liabilities at the time of making the transaction. The acquisition price is estimated to be EUR 8.0 - 8.5 million. Three quarters of the price will be paid in cash and one quarter in Technopolis Plc shares.
The transaction will be closed under the planned terms and conditions provided that the due diligence investigations made and ordered by Technopolis do not raise any obstacles to closure and that a Technopolis Extraordinary General Meeting approves the share issue to be proposed later.
Technopolis believes that the combination of the strengths of the two companies will form an even stronger nationwide service enterprise for high tech companies. In the view of Technopolis, the Group formed through the share acquisition will have excellent opportunities to continue to develop its business competitively and profitably. Technopolis expects Karelteks Russian expertise to add value to the Groups operations. The transaction will also expand the operational and regional profitability of the Groups property investments.
Technology Centre Kareltek is a high tech operating environment in the vicinity of the Lappeenranta University of Technology. The technology center hosts 98 companies employing 765 persons. Kareltek Incs net sales for 2004 were EUR 3.8 million and its net profit was EUR 0.6 million. The total surface area of the office buildings owned by the company is 26,346 floor square meters.
For further information:
Pertti Huuskonen, tel. +358 400 680 816
Helsinki Stock Exchange
Main news media
Compiler´s choice - More News Releases
Archive 2005. News Releases