Home > News > Industry News > Glaston is Selling Its Tampere Factory Property,and Subscription Commitments of the Planned Share Issue

Glaston is Selling Its Tampere Factory Property,and Subscription Commitments of the Planned Share Issue

Post Time:Feb 25,2013Classify:Industry NewsView:84

Glaston Corporation has on 21 February 2013 signed a binding letter of intent on the sale and leaseback of its factory property complex located in Tampere, Finland. The buyer of the property complex is Tampereen Mummu ja Poika Oy, a real estate group belonging to Lahtiset Yhtymä, on behalf of the real estate companies to be formed. The value of the sale is EUR 12.5 million, of which the estimated gain on the sale will be approximately EUR 3 million.     

In the letter of intent, the parties have agreed on signing a long term lease contract. The annual cost effect of the rent for Glaston will be approximately  EUR 1.1 million as of 1 April 2013.

The property complex consists of four plots and buildings. This area covers approximately 11 hectares and has five buildings and four unheated storage structures.

The prerequisite for the execution of the sale of the property complex is that certain conditions, such as signing the lease contracts on premises to be used by Glaston, are fulfilled. The sale is estimated to be completed by the end of March 2013. The sale of the factory property is a part of the total arrangement described in the stock exchange release announced by Glaston on 7 February 2013. By means of this arrangement, Glaston strengthens its financial position and substantially reduces the amount of its interest-bearing liabilities.

As a part of the sale of the property, it has been agreed with the buyer of the property complex and Hymy Lahtinen Oy, an investment company of Lahtiset Yhtymä, that Hymy Lahtinen Oy will subscribe for Glaston shares with EUR 2 million if the share issue planned by the Company is executed (“Share Issue”). On 7 February 2013, Glaston announced in a stock exchange release that the contingent subscription commitments of the planned Share Issue cover share subscriptions up to a total amount of approximately EUR 8.3 million. This amount included a subscription commitment of approximately EUR 1.5 million given by Hymy Lahtinen Oy. The total amount of subscription commitments received in the Share Issue increases thus by EUR 0.5 million to EUR 8.8 million due to the new subscription commitment given by Hymy Lahtinen Oy in connection with the sale of the property. If the Share Issue is executed, Glaston is, in case of potential oversubscription, planning to allocate new shares first to the shareholders in proportion to their current shareholding and thereafter to Hymy Lahtinen Oy, on the basis of the above commitment, before allocating shares to other subscribers. More information on the planned Share Issue will be announced if the Board of Directors decides to execute the Share Issue.

For further information, please contact:
Arto Metsänen, CEO and President, Glaston Corporation, Tel. +358 10 500 500
Sasu Koivumäki, CFO, Glaston Corporation, Tel. +358 10 500 500

Agneta Selroos
Director, Communications and Marketing

Glaston Corporation
Glaston is a global company developing glass processing technology for architectural, solar, appliance and automotive applications. Our portfolio ranges from pre-processing and safety glass machines to services. We are dedicated to our customers’ continued success and provide services for all glass processing needs with a lifecycle-long commitment in mind. For more information, please visit www.glaston.net. Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki Small Cap List.

Source: http://www.glassonweb.com/news/index/18412/Author:

Hot News