Panostaja Oyj - Other information disclosed according to the rules of the Exchange

THE BOARDS OF PANOSTAJA SUBSIDIARY TAKOMA OYJ AND TAKOMA GEARS OY DECIDE TO FILE FOR BANKRUPTCY

Panostaja Oyj              Stock Exchange Bulletin       March 20, 2017        
    11:50 

THE BOARDS OF PANOSTAJA SUBSIDIARY TAKOMA OYJ AND TAKOMA GEARS OY DECIDE TO
FILE FOR BANKRUPTCY 

The Boards of Takoma Oyj, which is a subsidiary of Panostaja and parent company
of Takoma Group, and Takoma Gears Oy, the Group’s subsidiary providing power
transmission solutions, have today decided to file bankruptcy applications. 

Takoma’s market situation has weakened significantly since the confirmation of
the reorganization program on September 30, 2014, meaning that the assumptions
regarding profitability and financing have not been realized. The Group has
made heavy losses due to the sharp decline of the offshore and marine industry,
which has diminished the Group’s solvency and liquidity. 

Together with Panostaja, Takoma has implemented significant functional changes
aimed at adapting the operations to the prevalent demand and making them
profitable once more. However, the efforts to improve sales efficiency and
acquire new customers have failed to increase business volume, and the demand
for Takoma products on the market has been insufficient. 

As a result of this, Takoma is currently unable to implement its reorganization
program and continue its operations without significant additional financing.
Panostaja has worked with Takoma to explore numerous additional financing
options and the possibilities of divesting Takoma’s assets and operations
without finding a satisfactory solution. 

The current economic climate and Takoma’s predictions would have required
significant refinancing, which Panostaja, as the majority owner, is not willing
to provide. 

“As an owner, we are strongly committed to developing all of our companies, but
sometimes we are unfortunately forced to make difficult decisions. It is deeply
regrettable that we were unable to find a solution for continuing Takoma’s
operations, despite numerous attempts. We will make every effort with the
bankruptcy administration to find someone to continue Takoma’s operations as
soon as possible,” Panostaja CEO Juha Sarsama says. 

Once Takoma Oyj has been declared bankrupt, Panostaja’s IFRS-compliant control
in Takoma will end and Takoma will no longer be incorporated into Panostaja
Group. In accordance with the IFRS, Takoma will be classified as a discontinued
operation, and its income statement and cash flow will be listed in Panostaja’s
Interim Report of April 30, 2017 under discontinued operations. In this
context, Panostaja will record an estimated loss of MEUR 2.5 in the Group’s
second quarter profit/loss. In addition to Takoma Oyj’s shares, Panostaja Oyj
will write down all receivables from Takoma Oyj and Takoma Gears Oyj whose
effect on the Group’s profit/loss has been taken into account in the loss
amount. 



Panostaja Oyj

Juha Sarsama

CEO



Further information:

Juha Sarsama + 358 40 774 2099 juha.sarsama@panostaja.fi



Panostaja is an investment company developing Finnish SMEs in the role of an
active majority shareholder. The company aims to be the most sought-after
partner for business owners selling their companies as well as for the best
managers and investors. Together with its partners, Panostaja increases the
Group's shareholder value and creates Finnish success stories. Panostaja
operates in eight business segments, and Panostaja Group employs some 1,300
staff. Panostaja’s shares (PNA1V) are quoted on the NASDAQ OMX Helsinki Stock
Exchange. In the 2016 financial period, the Group’s official net sales totaled
MEUR 172.5. 

www.panostaja.fi