Kotkamills Group Oyj - Company Announcement

Kotkamills Group Oyj: STRATEGIC REVIEW OF MALAYSIAN OPERATIONS

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

26 October 2016, at 6:30 pm (CET + 1)





Kotkamills Group Oyj owns, indirectly through its wholly owned subsidiary
Kotkamills Oy, all issued and outstanding shares in L.P. Pacific Films ("LPPF"),
a Malaysian limited liability company. LPPF operates an impregnating plant in
Pasir Gudang, Malaysia, focusing on Imprex® films and core stock. The operations
of LPPF are part of the Group's Industrial Products segment. For the financial
year ended 31 December 2015, the turnover of LPPF was EUR 13.9 million (MYR
60.3 million).

Kotkamills Group Oyj has taken steps to improve liquidity, performance and
profitability of its wholly owned subsidiary Kotkamills Oy by optimising and
developing existing operations. As part of such efforts, Kotkamills Group Oyj
has initiated a strategic review process concerning LPPF for the purposes of
evaluating strategic options with respect to LPPF, including a potential
disposal.

Under the terms and conditions of Kotkamills Group Oyj's EUR 105,000,000 Senior
Secured Callable Bonds 2015/2020 (ISIN: FI4000148705), a disposal of shares in
LPPF would require a consent from the bondholders in accordance with the terms
and conditions of the bonds. A written procedure has on the date hereof been
initiated for the purpose of obtaining such consent for the event that
Kotkamills Group Oyj would, as a result of the ongoing strategic review process,
decide on a disposal of the shares in LPPF. The request delivered to all
bondholders is attached hereto.



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.



Attachments



Letter of Nordic Trustee Oy to the bondholders












[]

Attachments:

Kotkamills - Consent Request.pdf