EUR 40 MILLION LOAN FOR ASPOCOMP FROM STANDARD CHARTERED BANK HAS BEEN SIGNED
ASPOCOMP GROUP OYJ COMPANY ANNOUNCEMENT March 21, 2007 at 1:55 PM
Aspocomp Group Oyj has agreed on a EUR 40 million credit facility with Standard Chartered Bank (Hong Kong) Limited. The loan will be used to purchase the 49 percent minority share in Aspocomp’s Suzhou, China based joint venture ACP Electronics Ltd from the Taiwanese Chin-Poon Holdings. The loan will be taken out in full in connection with the minority share purchase, scheduled to take place in March, and it has an 18-month term with an option for the lender to extend it by another 18 months. Standard Chartered Bank was the main organizer in financing of the acquisition. Standard Chartered Bank and Avista Advisory Group acted as the joint financial advisors to the loan.
As part of the financing arrangement and based on the authorization from the Extraordinary General Meeting of January 19, 2007, the Board of Directors of Aspocomp has resolved to issue 4,000,000 warrants to Standard Chartered Bank in deviation from the shareholders pre-emptive subscription rights. Each warrant entitles its holder to subscribe for one share in the company. As a result, the total number of the company shares can increase by a maximum of 4,000,000 shares. The warrants may be exercised from 18 months after their issuance date (or earlier if a person or entity will acquire over 30 percent of the company shares) until 36 months after their issuance date. The subscription price of each share is EUR 1.57, which corresponds to the market price of Aspocomp’s share on March 16, 2007.
In connection with the above-mentioned loan agreement, Aspocomp has made a commitment to Standard Chartered Bank not to issue more than 40,000,000 shares, based on the authorization from the Extraordinary General Meeting, without the consent of Standard Chartered Bank. In addition, Aspocomp has undertaken to reserve 10,000,000 shares of the authorization for a possible share issue on commercially acceptable terms. The issue would take place in the event Standard Chartered Bank requests it within 120 days prior to the scheduled repayment of the above-described loan in September 2008. The schedule for the possible issue may change if the term of the loan is extended.
Aspocomp signed the minority purchase agreement on March 16, 2007, and published the related bulletins on March 15 and 16, 2007.
For further information, please contact Maija-Liisa Friman, CEO,
tel. +358 9 7597 0711.
ASPOCOMP GROUP OYJ
President and CEO
Aspocomp: Innovative interconnection solutions for the electronics industry
The Aspocomp Group offers and develops innovative interconnection solutions for the electronics industry in close cooperation with its customers. We are strongly positioned as a supplier of mobile data terminal equipment components and aim to further bolster our position as a supplier to the automotive industry and data communications networks. We offer our global customers a fast road to mass production through flexible and cost-effective adaptation of new technologies.
The Aspocomp Group’s production facilities are located close to its customers in Finland, China, and Thailand. In 2006, the Group’s net sales stood at EUR 149 million and it had about 3,350 employees.
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