TECHNOPOLIS PLC STOCK EXCHANGE RELEASE October 7, 2010 at 05.00 pm
TECHNOPOLIS AND ÜLEMISTE CITY CLOSED JOINT VENTURE DEAL
Technopolis Plc and the Tallinn-based Smart City Group As and its subsidiary
Ülemiste City As have signed a share purchase agreement, creating a joint
venture, Technopolis Ülemiste As. Technopolis' investment in the new company
totals EUR 9.43 million. The final transaction price will be adjusted later
based on Technopolis Ülemiste's net debt position. In addition, an earn-out
payment totaling EUR 0.5 million will be paid, if the company achieves certain
targets over the next two years. Technopolis Group has a 51 % holding in
Technopolis Ülemiste, while the remaining 49 % interest is held by Smart City
Group subsidiary Ülemiste City As.
Technopolis Ülemiste has a property portfolio comprising approximately 70,000
square meters with approximately 46,000 square meters of modern office
buildings. The company also owns building rights totaling approximately 150,000
square meters and suitable for office space. The enterprise value of
Technopolis Ülemiste is EUR 63.5 million with loans totaling EUR 43 million.
The company's pro forma full-year net sales is expected to total EUR 4.5
million and EBITDA EUR 3.6 million.
Information about the establishment of Technopolis Ülemiste have been covered
in the stock exchange release published on March 26, 2010 and in the interim
report covering January 1 - June 30, 2010 published on July 17, 2010.
With the closing of this deal, the Group's Management estimates that
Technopolis' net sales and EBITDA will grow between 2 - 4% in 2010. The earlier
estimate called for net sales and EBITDA growth of 0 - 2 %.
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