Release details

2017-10-12 11:10 CEST
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Kotkamills Group Oyj: DISPOSAL OF KOTKAMILLS IMPREX OY

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

12 October 2017, at 12:10 pm (CET +1)

Kotkamills Group Oyj has on 16 December 2016 and 23 December 2016 published stock exchange releases concerning the strategic review process concerning Kotkamills' Imprex® business line (the "Imprex Business"). The Imprex Business has since been transferred to Kotkamills Oy's wholly owned subsidiary Kotkamills Imprex Oy, effective as of 1 September 2017.

In relation to the strategic review process concerning the Imprex Business, Kotkamills Imprex Oy's sole shareholder Kotkamills Oy has today on 12 October 2017 signed a share purchase agreement concerning the sale and purchase of all issued and outstanding shares in Kotkamills Imprex Oy to Dongwha Enterprise Co. The transaction is expected to be completed at the end of October 2017.

The enterprise value (on a debt and cash free basis) of Kotkamills Imprex Oy is EUR 27 million. The purchase price is subject to a customary closing accounts adjustment. The purchase price will be paid to Kotkamills Oy in cash. In accordance with the terms and conditions of the consent for the disposal of the Imprex Business granted by the holders of Kotkamills Group Oyj's EUR 105,000,000 Senior Secured Callable Bonds 2015/2020 (ISIN: FI4000148705) (the "Bonds") on 16 January 2017, 50 per cent of the net disposal proceeds received by Kotkamills Oy from the sale of Kotkamills Imprex Oy shall be applied in partial repayment on outstanding Bonds.

Additional information on the Imprex Business and the reasons for the strategic review process are set out in Kotkamills Group Oyj's stock exchange releases of 16 December 2016 and 23 December 2016. Additional information on the transfer of the Imprex Business from Kotkamills Oy to Kotkamills Imprex Oy is set out in Kotkamills Group Oyj's stock exchange releases of 5 July 2017 and 1 September 2017.

The disposal improves the Kotkamills group's cash position and operating profit, but Kotkamills Group Oyj does not expect it to have significant impact on the issuer's balance sheet.

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.

HUG#2141512