Valoe Oyj - Company Announcement

VALOE SOLD ITS CHINESE SUBSIDIARY AND RELATED LIABILITIES TO SAVCOR TEMPO OY

Valoe Corporation                                                  Stock
Exchange Release 10 May 2016 at 09.40 Finnish time 



VALOE SOLD ITS CHINESE SUBSIDIARY AND RELATED LIABILITIES TO SAVCOR TEMPO OY

Valoe Corporation has concluded its negotiations with a Savisalo family related
company for selling Valoe’s subsidiary in Beijing, China. In the arrangement
Valoe sold 100 percent of the shares in Savcor Pacific Ltd, a Hong Kong
subsidiary of Valoe, to Savcor Tempo Oy. Savcor Pacific owns 100 percent of the
shares in the Chinese subsidiary, Savcor Face (Beijing) Co., Ltd. Both
companies as well as the debts and liabilities related to their operations were
transferred to Savcor Tempo Oy. Valoe pays Savcor Tempo Oy a total of EUR 0.3
million by the end June 2017 for taking over the debts and liabilities of the
Chinese subsidiary. An annual interest rate of 12 percent will be paid on the
debt. 

Only a guarantee on lease liability given by Valoe on behalf of the Chinese
factory was excluded from the transaction. The guarantee amounts to EUR 0.65
million at the most if realized. A provision equivalent to the guarantee was
booked in Valoe’s Financial Statements for 2014 where it has been recognized as
an additional expense and the mother company’s liability as announced earlier.
Valoe has contested the guarantee. 

Valoe has written down the value of the shares of its subsidiary, Savcor
Pacific Ltd, in the Financial Statements for 2014. 

Valoe estimates that the aforesaid arrangement improves its consolidated result
by ca. EUR 7 million. The aforementioned figures are at this point only
estimations. Valoe will report the final result of the arrangement in its
Interim Report for the second quarter that will be released on 3 August 2016. 



In Mikkeli 10 May 2016

Valoe Corporation

Board of Directors



For more information:
Iikka Savisalo, President and CEO, Valoe Corporation
Tel. +358 40 521 6082, email: iikka.savisalo@valoe.com



Distribution:
NASDAQ OMX, Helsinki
Main media
www.valoe.com



Valoe Corporation specializes in the clean energy, especially in photovoltaic
solutions. Valoe provides automated production technology for solar modules
based on the company’s own technology; production lines for modules; solar
modules and special components for solar modules. Valoe's head office is
located in Mikkeli, Finland.