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Inission takes 26% of Incap

Swedish contract manufacturer Inission AB has become Incap's largest shareholder.
After registration of the new shares subscribed in the directed share issue, Inission AB will hold 28,500,000 shares in Incap Corporation, corresponding to approximately 26% of the total share capital.

The comprehensive arrangement agreed between Inission AB and Incap Corporation on 21 July 2013 includes an option for Inission AB to combine and unite Inission AB's business operations with Incap Corporation. The use of this option shall be notified by Inission AB by the end of the year 2013.

The consummation of the option is conditional to the approval of the shareholders' meeting of Incap Corporation and the granting of the below-mentioned exemption by Financial Supervisory Authority. Inission's financial partners shall also approve the deal. If the option is used, the uniting of Incap and Inission will be carried out by Incap Corporation acquiring Inission AB's subsidiaries' shares and business operations. The purchase price is based on the actual result of Inission AB for the years 2011 and 2012 and for January-June 2013.

If the transaction is consummated in accordance with the agreement conditions, Incap will pay the purchase price by directing a new share issue to Inission in two phases. In the first phase, the value of the new shares issued will correspond to 70 per cent of the total purchase price with the new shares being issued in connection with the consummation of the agreement. The remaining 30 per cent of the purchase price will be paid through a second directed share issue two weeks after Incap has published its financial statements for 2013.

Lassi Noponen, Chairman of the Board of Incap Corporation: "We welcome Inission as a new shareholder. The Finnish-Swedish cross border element of this arrangement will enhance our competitiveness in the future. During this process we learned about Inission's novel operational model in the EMS industry and we believe that together with Inission Incap will be a strong player in the EMS business and in future consolidation of the industry."

Fredrik Berghel, CEO of Inission AB: "The EMS industry is under consolidation and Inission wants to be proactive within the consolidation. The merger of Incap and Inission will result in a very attractive new structure in the business, and the new company will have strong presence in addition to Sweden and Finland also in the global market. The combined customer portfolio is complementary and very attractive. The synergies will be found within marketing, production and sourcing. Access to production from Incap's factory in India will give new possibilities in the Swedish market. The merger also enables enhanced mechanical production within the Vaasa factory."
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