Componenta agrees to sell shareholding in unit to management buyer

By Caroline Salls

Pittsburgh, Aug. 4 – Componenta Group signed an agreement to sell its shareholding in Componenta Dökümcülük Ticaret ve Sanayi AS, amounting to 93.6% of the company’s shares and votes, to Döktaº Metal Sanayi ve Ticaret AS at nominal price, according to a news release.

The company said the purchaser is owned by the management of Componenta Turkey.

The agreement covers all of the company’s iron, machine shop and aluminum business in Turkey, the release said.

Componenta said the transaction has no cash flow impact.

According to the release, Componenta Turkey, in its capacity as creditor, accepted the draft corporate restructuring programs concerning Componenta Corp. and Componenta Finland Oy on Friday.

The share transaction is expected to close in the coming weeks and is a prerequisite for the completion of the share transaction that the Turkish club loan banks accept the transaction and discharge Componenta from all liabilities and obligations based on the club loan agreement, including the discharge from an €80 million loan guarantee.

In addition, Componenta said completion of the transaction requires that the draft restructuring programs of Componenta Corp. and Componenta Finland Oy are confirmed and that the other terms and conditions of the transaction are fulfilled.

Componenta Turkey will continue as casting supplier to Componenta Främmestad under the current terms and conditions.

“The only option for Componenta was to give up ownership of Componenta Turkey,” chief executive officer Harri Suutari said in the release. “The Turkish group is indebted and Componenta does not have the capabilities to finance its operations.

“Acceptance of the draft restructuring programs for the Finnish group companies, which was agreed on in connection with the share transaction, is of considerable significance for the success of the restructuring programs in the Helsinki district court and thus for the continuity of Componenta’s operations.

“After the bankruptcy of the Componenta Wirsbo forging group, the sale of the shareholding in the Turkish company and possible confirmation of the restructuring programs, Componenta will continue as a Finnish-Swedish casting group with a debt burden that has been adjusted to match its revenues and with genuine opportunities for developing its operations.”

Componenta is a supplier of cast and machined components and is based in Helsinki, Finland.

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