INCAP SIGNED A LETTER OF INTENT CONCERNING THE SALE OF ITS FURNITURE SECTOR
Incap Corporation has signed a letter of intent concerning the sale of the shares of its furniture sector Incap Furniture Ltd. The letter of intent is compatible with the strategy previously publicized by Incap, whereby the company concentrates on manufacturing services in the electronics sector and aims to differentiate the furniture sector from Incap.
The buyers of the shares are the management of Incap Furniture Ltd, Finnish Industry Investment Ltd., JMC Finance Oy, Teknoventure Oy and Jokilaaksojen rahasto I Ky. The buyers aim to develop further the business of contract manufacturing of furniture utilizing the companys new production technologies and international customer contacts.
Mr Sauli Huikuri will continue as CEO of the company.
The purchasing price amounts to 5.55 million euro.
According to the letter of intent the final contract will be signed by 1 March 2002. The transaction will come into effect as soon as the parties reach consensus concerning the final terms of the contract of sale and Incap Corporations Board of Directors has approved of the sale.
Key figures of Incap Furniture Ltd:
INCAP FURNITURE LTD 1998 1999 2000 1-9/2000 1-9/2001
Net turnover 34.6 36.6 37.8 28.9 26.0
Operating profit 0.5 0.7 1.3 0.9 8.6
Liquid assets 0.2 0.02 0.3 0.2 4.4
Equity 2.6 2.6 2.8 3.1 11.0
Credits with interest 10.3 8.5 8.8 9.4 7.3
Credits without interest 3.7 5.3 4.5 2.7 5.8
Personnel 34.6 36.6 37.8 28.9 26.0
The above key figures are accordant with the official profit and loss account. Operating profit for January September includes a total income of 6.5 million euro in insurance refunds that exceed the previous value of the fixed asset items of the Kärsämäki facility, which was destroyed in a fire in 2001.
A press conference concerning the letter of intent will be arranged at Oulu Radisson SAS on 4 January 2002 at 2 pm.
Espoo, 4 January 2002
Board of Directors
President and CEO
Sauli Huikuri, CEO for Incap Furniture Ltd
tel. +358 440 389 700
Helsinki Stock Exchange