Kotkamills Group Oyj - Inside information

Kotkamills Group Oyj: OPTIMIZATION OF GROUP STRUCTURE

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

5 July 2017, at 9:00 am (CET + 1)



The Kotkamills group is continuously seeking to optimize and develop existing
operations to improve the liquidity, performance and profitability of the group.
As part of such efforts, Kotkamills Group Oyj's ("Kotkamills Group") wholly
owned subsidiary Kotkamills Oy ("Kotkamills") intends to transfer three of its
existing business lines, namely the Imprex®, Absorbex® and Wood business lines,
into wholly owned subsidiaries of Kotkamills (the "Reorganisation"). Kotkamills'
fourth existing business line, Consumer Boards, producing bleached CTMP base
high-quality Nordic Folding Boxboard and recyclable barrier board products, will
remain in Kotkamills Oy.

The Imprex® business line is producing resin-treated core material for high-
pressure laminates used in various decorative and industrial applications as
well as phenolic resin treated products designed for overlaying of wood-based
panels to be used mainly in concrete shuttering and in the transport and
construction industries. The Absorbex® business line is producing saturated base
kraft paper used as raw material in high pressure laminates and phenolic
overlaying films, which in turn are used in the construction, surface cladding
and furniture industries. The Wood business line is producing high-quality
spruce products for demanding joinery and construction purposes.

The purpose of the Reorganisation is to optimize the group structure, increase
efficiency and transparency and optimize the performance, profitability and
development of each business line. In the Reorganisation, materially all assets
and liabilities of the business lines to be transferred will be transferred to
the relevant subsidiaries (intended to be named Kotkamills Absorbex Oy,
Kotkamills Imprex Oy and Kotkamills Wood Oy), including buildings and machines,
current assets, receivables, working capital and intellectual property rights.
The Reorganisation is primarily intended to be implemented by way of a
contribution in kind against shares in the relevant subsidiary. The employees of
the Imprex®, Absorbex® and Wood business lines will transfer along with the
relevant business line and the Reorganisation will not affect the rights and
obligations of the employees.

The Reorganisation is intended to be implemented (in one or several phases)
during the second half of 2017.

Under the terms and conditions of Kotkamills Group's EUR 105,000,000 Senior
Secured Callable Bonds 2015/2020 (ISIN: FI4000148705), the Reorganisation
constitutes a permitted transfer between Kotkamills group companies. To the
extent the assets transferred are currently covered by the Transaction Security
(as defined in the terms and conditions of the bonds), the existing security
arrangements will remain in place or the receiving subsidiaries will grant
appropriate security over the assets as required under the terms and conditions
of the bonds.



Kotkamills Group Oyj
Board of Directors



For additional information, please contact:

CFO Petri Hirvonen, tel.+358 40 571 0834, petri.hirvonen@kotkamills.com



DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com


Kotkamills Group in brief

Kotkamills is a responsible partner that delivers renewable products and
performance to its customers' processes via product innovations created from
wood, a renewable raw material. The key brands of the company include Absorbex®
and Imprex®, both innovative laminating paper products for the laminate, plywood
and construction industries. Moreover, Kotkamills offers ecological, technically
sound and visually attractive wood products for demanding joinery and
construction. In summer 2016, Kotkamills started up a new board machine
producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including
the capability to add barriers on-machine. All Consumer Boards material
solutions are fully recyclable and repulpable.

Kotkamills has two production sites in Finland, located in Kotka and Imatra. The
majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.



www.kotkamills.com



Disclaimer

The information contained in this release shall not constitute an offer to sell
or the solicitation of an offer to buy securities of Kotkamills Group Oyj in any
jurisdiction.








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