Harju Elekter
Group’s Finnish subsidiary purchases Finnkumu Oy

Harju Elekter 

17.06.2014 13:30

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Estonia, 2014-06-17 13:30 CEST (GLOBE NEWSWIRE) --  On 17 June 2014, Satmatic
Oy, a subsidiary of AS Harju Elekter in Finland, signed a contract for the
purchase of all shares in Finnkumu Oy, Finland's largest pre-fabricated
substation producer. After the transaction, Finnkumu Oy will continue to
operate under its own name and brand as a wholly-owned subsidiary of Satmatic
Oy. By purchasing Finnkumu Oy, the Group will increase our market share in
Finland as well as elsewhere in Scandinavia and increases the product range. 

Simo Puustelli, Managing Director of Satmatic Oy, was appointed Chairman and
Endel Palla, Andres Allikmäe, Ülo Merisalu (Managing Director of AS Harju
Elekter Elektrotehnika) and Matti Ollila was appointed Member of the Management
Board of Finnkumu Oy. Matti Ollila will also continue as a Managing Director of
Finnkumu Oy. 

The transaction took effect on 17 June 2014, which is also when accounts were
settled. For the purchase transaction, EUR 6,575 thousand was paid. Pursuant to
the contract, after the audited annual report is approved, in 2015 an
additional 50% of the company's operating profit in 2014, and in 2016 an
additional 40% of the company's operating profit in 2015 shall be paid to the
sellers. The purchase transaction was funded out of the own funds of AS Harju
Elekter. 

Finnkumu Oy, financial summary 2011-2013  
1000 euros                          2013   2012   2011
Cash and cash equivalents            820    413    512
Securities                           374    174    155
Trade receivables                    811    935    389
Inventories                        1 504    925    532
Non-current assets                    43     32     31
Total assets                       3 552  2 479  1 619
Current liabilities                  804    834    327
Equity                             2 748  1 645  1 292
incl. share capital                   24     24    254
Revenue                           10 391  6 634  4 126
EBIT                               1 626    884    419
Net profit                         1 250    664    273
Basic earnings per share (EUR)       511    271    108
Number of shares                   2 448  2 448  2 540
Dividend per share                    88     60     45
                                                      

Since the end of the previous financial year there are no significant changes
in the Finnkumu's business activities. We confirm that there are no valid
contracts between Group's enterprises and Finnkumu Oy, and Finnkumu Oy has no
loans or any court or arbitration proceedings involving the commercial
undertaking. 

Satmatic Oy is the leading producer of automated industrial equipment and the
importer and distributor of the Group's products in Finland. The company's
headquarter located in Ulvila and plants in Ulvila and in Kerava. In 2013, the
enterprise's turnover amounted to EUR 19.7 (2012: 21.3) million, and there are
76 employees working in the enterprise. 

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%) and Rifas UAB (63%), as well as the telecommunications products
manufacturer AS Harju Elekter Teletehnika (100%) in Estonia. In addition, AS
Harju Elekter has a holding in the affiliated company AS Draka Keila Cables
(34%) and financial investments in the Latvian electrical equipment sales
company SIA Energokomplekss (14%) and in the Finnish publicly listed company
PKC Group Oyj (5%). 

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 investor relations manager
+372 671 2761
News Source: NASDAQ OMX



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Language:     English
Company:      Harju Elekter
              
               
              Estonia
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         EE3100004250
WKN:          
 
End of Announcement                             DGAP News-Service
 
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