Kotkamills Group Oyj - Company Announcement

Kotkamills Group Oyj: DISPOSAL OF MALAYSIAN OPERATIONS

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

18 November 2016, at 9 pm (CET + 1)





In relation to Kotkamills' strategic review process concerning L.P. Pacific
Films ("LPPF"), as described in Kotkamills Group Oyj's stock exchange release
published on 26 October 2016, LPPF's sole shareholder Kotkamills Oy has today on
18 November 2016 signed and completed a share purchase agreement concerning the
sale and purchase of all issued and outstanding shares in LPPF to Surfactor
Germany GmbH. The ownership to LPPF's shares has been transferred to Surfactor
Germany GmbH with immediate effect.



The enterprise value (on a debt and cash free basis) of LPPF is EUR 25 million.
The purchase price is subject to a closing accounts adjustment, which is not
expected to be material. The purchase price is paid to Kotkamills Oy in cash.



Additional information on LPPF and the reasons for the strategic review process
and the disposal are set out in Kotkamills Group Oyj's stock exchange release of
26 October 2016.



The disposal improves the Kotkamills group's cash position and operating profit,
but Kotkamills Group Oyj does not expect it to have significant impact on
issuer's balance sheet.



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, and
a subsidiary L.P. Pacific Films for Imprex® production in Malaysia. 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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