NCAB backs out of Russia – sells the business for 1 Ruble
As previously reported, NCAB stopped deliveries of PCBs to customers in Russia, some time ago. However, following the development of Russia – Ukraine conflict, NCAB has decided to completely cease its operations in the country.
NCAB says in a press release that it does not consider the Russian subsidiary to have any value in the current situation and has therefore decided to sell it to the local company management for 1 Ruble.
“We see no immediate solution to the Ukraine conflict, and in the long term see limited business potential and high risks in the Russian market. Our experienced and long-standing management has shown interest in acquiring the company. For NCAB, this means that the liquidation costs are minimized”, says NCAB’s President and CEO Peter Kruk, in the press release.
The liquidation is expected to entail a write-down requirement of approximately SEK 40 million (EUR 3.88 million) for NCAB, which will impact the result in the first quarter in 2022.
Going forward, the sold company will not be able to use NCAB’s brand, nor will it have any support from NCAB’s Factory Management Team in China or any other parts of the PCB trader.
The company says that it doesn't expect any significant impact on cash flow following the decision