Aspocomp Group - Company Announcement

ASPOCOMP SIGNS LOI FOR THE EARLY PAYMENT OF RECEIVABLES FROM TTM, ENTERS INTO CONDITIONAL AGREEMENTS TO TERMINATE ITS DEBT RESTRUCTURING

TTM Technologies Inc. would become the largest shareholder of Aspocomp

Espoo, Finland, 2011-05-04 22:00 CEST (GLOBE NEWSWIRE) -- 
Aspocomp Group Plc., Company Announcement, May 4, 2011 at 11:00 pm

Aspocomp Group Plc (“Aspocomp”) has signed a Letter of Intent (LOI) with TTM
Technologies Inc. (“TTM”) as well as conditional agreements with its bank
lenders and the majority (69.2%) of the holders of its convertible bonds, which
would result in the termination of Aspocomp's debt restructuring agreement and
the strengthening of its balance sheet. 

The Letter of Intent was signed with TTM with a view to carrying out a
transaction in which TTM would pay EUR 14.5 million as the final installment of
the receivables from the sale of Aspocomp's subsidiary. The receivables are
related to the put and call option deed for 20% of the shares in Meadville
Aspocomp (BVI) Holdings Ltd. (MAH), which was sold in 2007. In addition, the
10% holding of TTM's non-controlling shareholders in Aspocomp's operating
subsidiary Aspocomp Oulu Oy would be redeemed through an exchange of shares, in
which Aspocomp Group Plc would offer 12,274,335 new shares in Aspocomp to TTM
by means of a directed issue; after the transaction, these shares would
represent a holding of approximately 19.7% in Aspocomp. 

Subject to the completion of the transactions contemplated with TTM, Aspocomp
would use the proceeds from the receivables and its existing cash balances to
repay its bank debts and to buy back a minimum of 69.2% of its convertible
bonds. The bank debts would be repaid at 100% of their nominal value of EUR
12.9 million, the accrued interests would be forfeited, and consequently the
debt restructuring agreement would be terminated. The convertible bonds would
be bought back at 66.7% of their nominal value. Aspocomp is planning to offer
the remaining convertible bond holders an opportunity to sell their bonds to
Aspocomp at the same terms that were set in the conditional agreement made with
69.2% of the bond holders. The nominal value of the outstanding convertible
bonds is EUR 10.3 million. 

Assuming that the definitive agreements with TTM will be signed and the
aforementioned transactions completed, the nominal value of Aspocomp's
interest-bearing debt will decrease to between EUR 3.0 to 4.5 million (nominal
value of the interest-bearing debt at the end of Q1/2011 was EUR 23.5 million).
Aspocomp's equity improvement would be between EUR 1.8 to 2.8 million and its
equity ratio would improve between 27 to 34 percentage points (equity ratio at
the end of Q1/2011 was 11.1%). The exact impacts depend on the outcome of the
buyback of the bonds. 

The transactions are expected to be completed by June 30, 2011. The Letter of
Intent signed with TTM will terminate, if the definitive agreements are not
signed by June 30, 2011. 

For further information, please contact Sami Holopainen, CEO,
tel. +358 9 59 181.



ASPOCOMP GROUP PLC.

Sami Holopainen
President and CEO

www.aspocomp.com


Aspocomp: Flexibility of product design

Aspocomp Group Plc sells and manufactures high-tech PCBs. Aspocomp's products
are used in the electronics industry, for instance, in telecommunications
networks, automobiles and many types of industrial applications.