ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE February 15, 2007 at 7:55 AM
FINANCING OF ASPOCOMP’S GROWTH IN INDIA AND CHINA
Based on the authorization of the Extraordinary General Meeting of January 19,
2007, and in order to finance part of its proposed investments in India and
China, Aspocomp Group Oyj considers launching a rights issue in the near future,
ranging from EUR 20 to 30 million. The issue would be based on the shareholders’
pre-emptive subscription right. Aspocomp has appointed Evli Bank Plc, Corporate
Finance as its financial advisor for the rights issue. To further finance the
investments, the Aspocomp Group is currently in negotiations to raise long-term
debt. The duration of the negotiations cannot currently be estimated and there
can be no assurance that they will result in an agreement. Aspocomp is also
considering further strengthening its equity later this year.
Aspocomp is aggressively pursuing its growth strategy by increasingly focusing on
technologically more demanding HDI printed circuit boards (PCBs). The primary
means to growth are further investments in Asia, the fastest growing HDI PCB
Consequently, Aspocomp is currently negotiating with Chin-Poon Industrial Co.,
Ltd. in order to acquire 100 percent ownership in the companies’ joint venture
ACP Electronics Ltd. in Suzhou, China. This would enable Aspocomp to fully
benefit from ACP Electronics’s profitability and cash flow and to increase the
Group’s HDI PCB production capacity in China. The management of Aspocomp is
currently not in a position to estimate the duration of the negotiations and they
may not necessarily result in an agreement. Aspocomp has issued a stock exchange
release on November, 17, 2006, regarding the negotiations.
As another part of the company’s investment program, Aspocomp continues building
the new HDI PCB plant in Chennai, India. The plant, with its 22,400 m2 production
area, would be India’s first HDI PCB production facility. According to current
estimates, the Chennai plant will start trial production towards the end of 2007
and full production in 2008.
Provided that Aspocomp moves forward with the investment projects, i.e. the
minority acquisition and product capacity expansion related to the Chinese
subsidiary as well as the India plant project, the total investment needed
between 2006 and 2008 is currently estimated at about EUR 170 million. If
Aspocomp succeeds in financing the projects in China and India, the positive
effect on the company’s net sales is expected to become visible starting 2008.
The investments required for the expansion are estimated to result in a
significant increase in the company’s indebtness and markedly higher financing
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 2005, the Group’s net sales stood at EUR 154
million and it had about 3,400 employees.
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