FINNFUND TO INVEST IN INCAP’S OPERATIONS IN INDIA
Incap Corporation Stock Exchange Release 26 November 2008 at 1.30 p.m.
To fund Indian investments and working capital, Incap Corporation has entered into a financing contract with Finnfund (Finnish Fund for Industrial Cooperation Ltd). Finnfund will make a share capital investment, totalling EUR 2 million, in Incap CMS Pvt. Ltd., Incap’s India-based subsidiary. The funding will be available for Incap by the end of 2009. Once the entire investment has been withdrawn, Finnfund will own a total of 32.6% of the share capital of Incap CMS Pvt. Ltd. According to the terms and conditions of the contract, Incap will withdraw from the contract in 2011 at the earliest and 2014 at the latest.
For the India-based subsidiary, the investment is equity-based. Due to the terms and conditions of the contract, the investment is regarded as a long-term loan in the Group’s IFRS financial statement.
“We are very satisfied that Finnfund will participate in the development of our business in India,” says Sami Mykkänen, President and CEO of Incap Group. “Finnfund’s financing enables investments and business growth that meets the customer demand and our strategy in India. We are also looking forward to utilising Finnfund’s extensive know-how on matters related to, for example, environmental and social responsibility.”
“The India-based contract manufacturing unit we acquired last year has met our expectations, particularly with regard to delivery capability, personnel competence and design expertise. New accounts have started in a promising way. However, business development has been slower than we initially expected.”
President and CEO
For further information, please contact:
Sami Mykkänen, President and CEO, tel. +358 40 559 9047
Eeva Vaajoensuu, Chief Financial Officer, tel. +358 40 763 6570
Hannele Pöllä, Director of Communications and Human Resources, tel. +358 40 504 8296
OMX Nordic Exchange Helsinki
INCAP IN BRIEF
Incap Corporation is an internationally operating contract manufacturer whose comprehensive services cover the entire lifecycle of electromechanical products from design and manufacture to maintenance services. Incap’s customers are leading equipment suppliers in energy-saving and well-being technology, for which the company produces new competitiveness as a strategic partner. Incap has operations in Finland, Estonia and India. The Group’s revenue in 2007 amounted to EUR 83 million and the company currently employs approximately 730 persons. Incap is listed on the OMX Nordic Exchange Helsinki. For further information, please contact: www.incap.fi.