On 10 May 2024, Fortaco Group Holdco Plc (“Fortaco” or the “Issuer”) announced it had instructed the agent for the Issuer’s senior secured bonds to initiate a written procedure to request the bondholders to vote in favour of certain transfers of value, granting of loans, releasing certain transaction security, the disposal of certain assets being subject to transaction security under the bonds and carrying out of certain mergers between members of the Group (the “Written Procedure“).

Due to a reguest from certain bondholders, Fortaco publishes the following preliminary financial information and other supplementary information regarding the Written Procedure and the strategic evaluation of some of its businesses:

On 10 May 2024, Fortaco announced the sale of its heavy project business in Jászberény, Hungary (Fortaco Zrt). The sale is part of the the strategic evaluation of Fortaco’s marine, energy, and heavy project businesses. The estimated short-term negative cash-flow impact originating directly from the sale of Fortaco Zrt is EUR 6.5 million. The business in Hungary has been clearly loss making. During the last 12 months ending March 2024, the recurring EBITDA and EBITA losses from this business amounted to EUR -3.9 million and EUR -5.0 million, respectively. Additionally, the incurred non-recurring costs amounted to EUR 0.6 million during the same period.

Fortaco will record an impairment loss (non-cash item) of EUR 9.6 million in its first quarter 2024 financials due to the classification of Fortaco Zrt to consitute asset held for sale. The transaction is still subject to the approval of Fortaco’s bondholders and some customary closing conditions, and it is expected to be closed by the end of June 2024.

As part of the strategic review and as announced in the release concerning the Written Procedure, Fortaco is contemplating to divest some operating assets of Fortaco Oy and certain non-core real estates in Finland. If completed, these potential divestments are expected to generate positive, one-off cash proceeds for Fortaco.

Fortaco will publish its January–March 2024 Business Review on 27 May 2024. Due to the silent period, Fortaco will not give any further comments on this matter before the publishing of Business Review.

Previous announcements

Fortaco’s Stock Exchange Release (10 May 2024): Fortaco Group calls for a written procedure

https://investors.fortacogroup.com/releases/fortaco-group-calls-for-a-written-procedure/

Fortaco’s press release (10 May 2024): Fortaco sells its heavy project business in Hungary
https://investors.fortacogroup.com/releases/fortaco-sells-its-heavy-project-business-in-hungary/

Fortaco’s press release (28 February 2024): Strategic evaluation of Fortaco’s marine, energy, and heavy project businesses ongoing

https://investors.fortacogroup.com/releases/strategic-evaluation-of-fortacos-marine-energy-and-heavy-project-businesses-ongoing/

For further information

Lars Hellberg

+358 40 572 9488

lars.hellberg@fortacogroup.com

Categories: Stock exchange releases