TECHNOPOLIS PLC STOCK EXCHANGE RELEASE March 26, 2010 at 12.45 p.m.
Technopolis Expands into Estonia
Technopolis has concluded an agreement with the Tallinn-based Smart City Group
As and its subsidiary Ülemiste City As to establish a joint venture. The joint
venture will be formed by Technopolis acquiring a majority holding in a company
to be founded and owned by Smart City Group As. The new company, to be named
Technopolis Ülemiste, will have a property portfolio comprising approximately
70.000 square meters of space currently held by Smart City Group As subsidiary
Ülemiste City As located next to Tallin International Airport. Approximately
47.000 square meters of the space consists of modern office buildings ranging
from 1-5 years in age.
The pro forma enterprise value of the Technopolis Ülemiste joint venture (to be
founded) is estimated at MEUR 63,5 with loans totaling MEUR 44. The company's
estimated full-year net sales is expected to total MEUR 4,75 and its estimated
EBITDA will be approximately 4 million euros. Pro forma figures have been
formulated on the basis of the financial statements as of the end of the
previous fiscal year. Technopolis' investment in the venture totals MEUR 9,93,
including an earn-out payment totaling MEUR 0,5 which will be based on the
achievement of commercial targets over the next two years.
Technopolis Group will have a 51 % holding in the Technopolis Ülemiste joint
venture, while the remaining 49 % interest will be held by Smart City Group
subsidiary Ülemiste City As. Technopolis Ülemiste will have a roughly 10% share
of the Tallinn office space market. The impact of the agreement on Technopolis
Plc sales and earnings will depend on how long it takes to complete the closing
of the deal. Once the deal has closed Technopolis Ülemiste will become a part
of the Technopolis Group.
”Technopolis Ülemiste will be our first international acquisition and lays an
excellent foundation for further growth in Estonia. The Technopolis growth
strategy calls for establishing operations in 2-3 new countries outside Finland
by the year 2014”, says Technopolis Executive Chairman Pertti Huuskonen.
”By partnering with a professional team with a proven track record we will gain
swift access to the Tallinn market. With a world class team, infrastructure and
customer base, Technopolis Ülemiste center already meets our selection
criteria”, says Technopolis CEO Keith Silverang
The final execution of the deal within the planned framework depends on the
approval of due diligence and joint venture financing procedures. Assuming
these procedures are successfully concluded, we estimate that the closing will
take place in June of 2010.
For more information, please contact:
Executive Chairman Pertti Huuskonen, +358 46 712 0065
CEO Keith Silverang, +358 40 566 7785
NASDAQ OMX Helsinki
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