Technopolis Sells 40% of Its Business in Kuopio to KPY for EUR 50 million


TECHNOPOLIS PLC          STOCK EXCHANGE RELEASE        APRIL 2, 2015 at 10.00 a.m.

Technopolis Sells 40% of Its Business in Kuopio to KPY for EUR 50 million

Technopolis Plc is selling 40% of its Kuopio-based business to KPY Sijoitus Oy, an investment arm of Osuuskunta KPY (KPY Cooperative). The sale will be carried out through a holding company, Technopolis Kuopio Oy, with Technopolis Plc selling its business in the Kuopio region for EUR 125 million. Technopolis will not record any gains or losses on the transaction. Technopolis Plc owns 60% and KPY 40% of the holding company. As part of the deal, KPY will be entitled to increase its holdings in Technopolis Kuopio Oy up to 49% at fair value on the transaction date.

The investment partner, Osuuskunta KPY, was founded in 1883 and is a long-term industrial owner and investor based in Kuopio. KPY has major holdings in Enfo Oyj, Voimatel Oy and Vetrea Terveys Oy. Osuuskunta KPY is owned by its 22,600 members.

Technopolis Kuopio will retain the Technopolis concept and branding. The deal includes a separate management agreement, which will be in effect for 10 years if Technopolis retains a minimum ownership of 30%. In the future, the holding company can invest in the expansion of existing campuses in the region, or in new growth projects.

In 2014, Technopolis' business in Kuopio generated net sales of EUR 15.5 million and EBITDA of EUR 8.5 million. Technopolis Kuopio Oy will be fully consolidated in the income statement and balance sheet of Technopolis Plc. As a result, the deal will have no effect on the net sales or EBITDA of Technopolis Plc. The increase in cash reserves of EUR 50 million will be spent on future growth investments and the repayment of short-term debt.

More information:
Keith Silverang
CEO
tel.+358 40 566 7785

Technopolis provides the best addresses for companies to operate and succeed in five countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 20 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,700 companies and their 47,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.