Estonia, 2014-07-09 09:59 CEST (GLOBE NEWSWIRE) --
Today, on 9th of July 2014 AS Harju Elekter and Prysmian Finland Oy concluded a contract according to which AS Harju Elekter sells their 34% holding in AS Draka Keila Cables to the core investor Prysmian Group. In the negotiations, the final price of the sales transaction was established at 6.2 million euros. According to the first semi-annual consolidated financial report of AS Harju Elekter, the value of AS Draka Keila Cables is estimated at 4.2 million euros. This means that the presumed profit from the transaction is 2.0 million euros, which will be written under finance income in the Group’s profit report for the third quarter.
Selling the holding was a strategic decision of Harju Elekter Group, making it possible to put more focus on the management of the enterprises in its main activity area and the expansion to the field of electrical engineering, incl. financing the purchase of Finnkumu Oy, the largest substation manufacturer in Finland. AS Harju Elekter is going to continue close cooperation with AS Draka Keila Cables in the procurements of low voltage and other cable products; similarly long-term rental contracts of production facilities are going to remain in force.
Harju Elekter is the leading MV/LV electrical and engineering devices producer in the Baltic States as well as well-known and respected in Scandinavia. Harju Elekter Group includes manufacturers of electrical equipment in Estonia, Finland and Lithuania: AS Harju Elekter Elektrotehnika (100%), Satmatic Oy (100%), Finnkumu Oy (100%) and Rifas UAB (63%), as well as the telecommunications products manufacturer AS Harju Elekter Teletehnika (100%) in Estonia. In addition, AS Harju Elekter has financial investments in the Latvian electrical equipment sales company SIA Energokomplekss (14%) and in the Finnish public listed company PKC Group Oyj (5%).
Prysmian Group is world leader in the energy and telecom cables and systems industry. With more than 130 years of experience, sales of €7 billion in 2013, about 19,000 employees across 50 countries and 91 plants, the Group is strongly positioned in high-tech markets and offers the widest range of products, services, technologies and know-how.
The transaction does not constitute a transaction between related parties within the meaning of NASDAQ OMX Tallinn’s Rules and Regulations. The management board and the supervisory board members of AS Harju Elekter are not personally interested in this transaction in any other way.
Andres Allikmäe
Managing Director/CEO
+372 674 7400
Additional information: Andres Allikmäe, Managing Director of AS Harju Elekter; Endel Palla, Chairman of the Supervisory Board (+372 674 7400).
Prepared by:
Moonika Vetevool
Corporate communication and IR manager
+372 671 2761