The Finnish Vaahto Group Plc Oyj announces that its reinforces its strategy, in accordance with which it under the lead of its new CEO, Vesa Alatalo, strongly focuses on the Process Technology business. The company carries out its Process Technology business through its subsidiaries Japrotek Oy Ab and Stelzer Rührtechnik International GmbH. As Vaahto Group is continuing implementing the strategy change it commenced in the spring of 2013, it is planning the divestment of its loss-making Paper Technology business. The Board of Directors is considering options regarding the divestment of the Paper Technology business, with the primary option being the sale of the business.
Vaahto Group Plc Oyj writes down subordinated loans it has granted to Vaahto Paper Technology Oy. Due to the writedowns, the equity of Vaahto Group Plc Oyj falls negative. The writedown will not have a cash-flow effect. Due to losses expected to be incurred by Vaahto Paper Technology Ltd, it is expected that also its equity will fall negative during the first quarter of the year 2014. To reinforce the financial position of Vaahto Group and to finance the new strategy, Vaahto Group is planning on implementing a share issue during the first half of 2014.
