Cencorp Corporation Stock Exchange Release 29 April 2015 at 12.10 Finnish time
CENCORP BOOKS AN ADDITIONAL EXPENCE AND MAKES A WRITE-DOWN IN THE PARENT COMPANY’S FINANCIAL STATEMENTS 31.12.2014 – THE COMPANY’S EQUITY DECEREASES BELOW HALF OF THE SHARE CAPITAL. THE BOOK ENTRIES HAVE NO INFLUENCE IN THE FIGURES OF THE PUBLISHED CONSOLIDATED FINANCIAL STATEMENTS
Cencorp has resolved to write down the value of the shares of its subsidiary Savcor Pacific Ltd (”Pacific”) in the financial statements for 2014. Pacific owns the shares of the Beijing company. As the process of selling the machinery and equipment of the closed Beijing factory is still going on, the company writes down the value of Pacific according to the prudence principle. Further, according to the prudence principle the company books a guarantee liability relating to the Beijing factory as an additional expense and parent company’s liability. According to the company’s current view the guarantee liability will not realize. The book entries do not change the consolidated financial statements figures in the Financial Statement Release published on 18 February 2015.
Due to the above mentioned facts Cencorp’s equity decreases below half of the share capital as on 31 December 2014. Thus, the Board of Directors will convene a general meeting to consider measures to remedy the financial position of the company. The matter will be handled in the annual general meeting to which a notice will be published later on on a separate announcement.
In practice Cencorp has already commenced measures to remedy the financial position of the company. In the extraordinary general meeting to be held today on 29 April 2015 the Board of Directors proposes to the general meeting that it gives an authorization for a share issue of max. 900,000,000 e.g. to enable the company to realize its financial arrangements fast after financial negotiations have been finished.
Cencorp will publish its Financial Statements for 2014 on 30 April 2015.
In Mikkeli 29 April 2015
Cencorp Corporation
Board of Directors
For more information: Iikka Savisalo President and CEO Cencorp Oyj Tel. +358 40 521 6082, Email: iikka.savisalo@cencorp.com
Distribution: NASDAQ OMX, Helsinki Main media www.cencorp.com
Cencorp Corporation specializes in the clean energy, especially in photovoltaic solutions. Cencorp provides automated production technology for solar modules based on the company’s own technology; production lines for modules; solar modules and special components for solar modules. Cencorp's head office is located in Mikkeli, Finland. The company is part of the Finnish Savcor Group.
