TECHNOPOLIS PLC STOCK EXCHANGE RELEASE 18.5.2006 at 11.00 a.m.
TECHNOPOLIS REACHES RESULT IN NEGOTIATIONS WITH JYVÄSKYLÄ CITY ON
THE ACQUISITION OF A MINORITY HOLDING IN JYVÄSKYLÄ SCIENCE PARK
Technopolis Plc, which specializes in high-technology operating
environments, has reached a result in negotiations with the City
of Jyväskylä on the acquisition of a minority holding in Jyväskylä
Science Park (Jyväskylän Teknologiakeskus Oy). The negotiations
concerned 34.13 % of Jyväskylä Science Park’s shares. The parties
have today signed a preliminary agreement whose entry into force
still requires ratification by the Jyväskylä City Board.
According to the negotiated result, the acquisition price will be
34.13 % of EUR 18.1 million, i.e. approximately EUR 6.2 million,
based on Jyväskylä Science Park’s net debt as at May 4, 2006. If
the net debt changes before completion of the transaction, the
acquisition price will be adjusted accordingly. Half of the price
will be paid in cash, and half in Technopolis Plc shares.
Closure of the transaction as planned will require that the
Jyväskylä City Board ratifies the preliminary agreement, that the
Jyväskylä City Council approves the share transaction, and that
the due diligence process carried out and ordered by Technopolis
reveals no significant new information that would prevent the
transaction from taking place. The matter will be handled by the
Jyväskylä City Board at its meeting of May 22, 2006 and is
expected to handled by the Jyväskylä City Council in June.
A further condition for the acquisition of the minority holding
from the City of Jyväskylä, as in the preliminary agreement, is
that Technopolis will be able to acquire at least more than 50 %
of the total shares and votes in Jyväskylä Science Park by
acquiring Jyväskylä Science Park shares from other shareholders as
well. Technopolis intends to commence negotiations on acquiring a
majority holding in Jyväskylä Science Park after the preliminary
agreement with the City of Jyväskylä has entered into force.
Technopolis estimates that the integration of two leading Finnish
technology centers will create a strong nationwide service company
for high-tech enterprises. The company’s view is that the group to
be formed through the planned share transaction will be in a good
position to continue its business development and capacity to
Jyväskylä Science Park provides an operating environment for high-
tech companies, located in close proximity to the University of
Jyväskylä. Jyväskylä Science Park hosts 120 companies that employ
1,800 persons. The 2005 net sales of Jyväskylä Science Park and
its subsidiary, JSP Facilities Oy, totaled EUR 12.4 million, while
the profit before taxes (Finnish Accounting Standards) was EUR 1.0
million. The total surface area of the premises leased and managed
by the company is approximately 45,000 floor square meters.
Measured by the number of customer companies, Technopolis Plc is
one of Europe's largest technology center operators. It
specializes in providing operating environments for high tech
companies and offers a comprehensive service package combining
modern premises and business and development services. Technopolis
currently operates in Oulu, Vantaa, Espoo and Lappeenranta. In
addition, it is preparing to expand its operations to the Russian
and Baltic markets. Some 9,000 people employed by nearly 700
companies are currently working in its technology centers.
Oulu, May 18, 2006
President and CEO
For further information, please contact:
Pertti Huuskonen, tel. +358 400 680 816, available mainly from
11.30 a.m. to 12.30 p.m.
Reijo Tauriainen, CFO, tel. +358 40 515 9848
Helsinki Stock Exchange
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