Componenta - Company Announcement

Componenta is preparing to strengthen its financial position by a convertible capital loan of EUR 30 - 40 million and through significant changes in the structure of its balance sheet

Componenta Corporation    Stock Exchange Release 24.3.2016 at 9.55

Componenta has on 4 December 2015 announced that it has started financial
negotiations to secure the company’s liquidity and implementation of the
strategy that is being prepared. Componenta published additional information
about the progress of the negotiations on 11 March 2016.  Componenta is
preparing a financial solution to secure the continuity of its operations and
to strengthen its financial position. In the planned solution, Componenta is,
among other things, aiming to issue a new convertible capital loan, to
negotiate arrangements concerning the current secured loans of the parent
company, to negotiate on the financing of the Turkish subsidiary with the
Turkish banks and to divest its piston business. 

The Board of Directors has decided to convene an extraordinary general meeting
on 15 April 2016 to resolve on the authorization for the Board of Directors to
resolve on an issue of shares and an issuance of special rights entitling to
shares. The aggregate amount of shares to be issued based on the authorization,
including shares received based on special rights entitling to shares, would
not exceed 100,000,000 shares. The Board of Directors will propose to the same
general meeting that it approves a new share-based incentive scheme for top
management to incentivize and commit them to the company. A notice to the
general meeting will be published as a separate stock exchange release. It is
intended that based on the authorization the company will, in the first phase,
issue a capital loan that may be converted into shares, amounting tentatively
up to a total of EUR 30 - 40 million. The convertible capital loan would be
subscribed for by a limited number of selected professional investors. The loan
subscriptions could be paid using cash or receivables from the company. The
exchange rate for the shares is planned to be 50 cents. The exchange rate is
based on the prevailing market price of the company’s shares and on preliminary
indications from the investors. In relation to the convertible capital loan,
the company has received preliminary conditional indications for more than EUR
20 million from certain institutional investors. 

In addition, Componenta is surveying the divestment of its non-core business
units. Componenta is currently negotiating the divestment of the Componenta
Pistons unit that manufactures pistons and is located in Pietarsaari, Finland. 

When realized, the planned arrangement will significantly strengthen the
company’s balance sheet and will enable the implementation of the company’s new
strategy. 

The planned arrangement is conditional and its implementation is subject to
certain uncertainties. The company aims to publish more detailed information on
the arrangement by 15 April 2016. 

Helsinki, 24 March 2016

COMPONENTA CORPORATION


Harri Suutari
President and CEO





For further information, please contact:

Harri Suutari
President and CEO
tel. +358 400 384 937

Markku Honkasalo
CFO
tel. +358 10 403 2710



Componenta is a metal sector company with international operations and
production plants located in Finland, Turkey, the Netherlands and Sweden. The
net sales of Componenta were EUR 495 million in 2015 and its share is listed on
Nasdaq Helsinki. The Group employs approx. 4,250 people. Componenta specializes
in supplying cast and machined components and total solutions made of them to
its global customers, who are manufacturers of vehicles, machines and
equipment.