World News: 13:30 GMT Thursday 29th August 2019. [Neo Industrial Plc via Globe Newswire via SPi World News]
NEO INDUSTRIAL PLC STOCK EXCHANGE RELEASE 29 August 2019 at 3.30 PM
Neo Industrial Plc has sold its shares of Riihimäen Kaapelitehdas Ltd to Riihimäen Tilat ja Kehitys Ltd. Selling price is EUR 2.0 million.
Sale of shares was part of total arrangement where Riihimäen Tilat ja Kehitys Ltd bought altogether 68.05 % and Neo Industrial Plc’s subsidiary Reka Cables Ltd 20.2 % shares of Riihimäen Kaapelitehdas Ltd. Third owner is Reka´s Pension fund, whose ownership decreased to be under 12 % after arrangement.
IFRS 16 Leases, which entered into force on 1 January 2019, is tempting to acquire assets for yourself instead of leases. As a first step Neo Industrial´s cable segment bought in the end of June one of the premises that is used in Keuruu plant. This arrangement at the end of August is the first step of Neo Industrial´s cable segment towards production premises in Riihimäki. Reka Cables Ltd acquired 20.2 % share of Riihimäen Kaapelitehdas Ltd. Company has plan to increase the ownership in future years.
Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the main list of NASDAQ Helsinki Stock Exchange. Neo Industrial's business segment is Cable Industry.
Globe Newswire: 13:30 GMT Thursday 29th August 2019
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