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2008-08-05 07:40:48 CEST 2008-08-05 07:41:37 CEST REGULATED INFORMATION Neomarkka - Company AnnouncementNEOMARKKA IS BUYING RUSSIAN CABLE MANUFACTURERNeomarkka Plc STOCK EXCHANGE RELEASE 5.8.2008 at 8.40 AM 1(2) NEOMARKKA IS BUYING RUSSIAN CABLE MANUFACTURER Neomarkka is buying majority of the shares of Russian OAO Expocable through its subsidiary. OAO Expocable is producing special cables e.g. for the use of oil and gasworks. The turnover of the company is around EUR 5.5 million having round 230 employees. OAO Expocable is manufacturing different steering and instrumentation cables. Company is specialised in producing cables used in nuclear plants and oil and gasworks. OAO Expocable is significant player in the Russian market in this segment, which consists of several small manufacturers. The factory of the company is situated in Podolsk, round 50 kilometres south from Moscow, next to the factory of Reka Cables. The factory of Reka Cables is manufacturing power cables and started its activities in fall 2007. The acquisition enlargers the coverage of Neomarkka´s cable business in Russia and enables further development of the factory area in Podolsk. ”The acquisition strengthens the position of Neomarkka´s cable business in Russia, extends the product range and offers new customer segments with excellent growth prospects”, says Neomarkka´s Managing Director Markku E. Rentto. ”After this acquisition the cable business of Neomarkka is closer to its target to be among the five biggest cable manufacturers in Russia.” Operational synergies will be reached also by joining administrative functions of the factories and by integrating the acquired business under the Reka brand as soon as possible. The acquisition supports the new strategy of Neomarkka to invest in industrial companies with similar synergic benefits and to develop those companies. Neomarkka Plc Markku E. Rentto Managing Director Further information: Markku E. Rentto, Managing Director, tel. +358 207 209 191 DISTRIBUTION OMX Nordic Exchange Helsinki Main media www.neomarkka.fi Neomarkka Plc is an investment company that invests mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Neomarkka owns Reka Cables, which manufacturers installation and power cables, and has 30% ownership of Nestor Cables Ltd, which produces communication cables. Neomarkka´s B shares are listed on the OMX Nordic Exchange Helsinki main market. |
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