CONSTI GROUP PLC STOCK EXCHANGE RELEASE 19 SEPTEMBER 2018, AT 5.55 P.M
Consti Group Plc's subsidiary Consti Korjausurakointi Oy has received a response
and counterclaim from Kiinteistö Oy Yrjönkatu 13 relating to arbitration
proceedings
Consti Group Plc's subsidiary Consti Korjausurakointi Oy has received a response
from Kiinteistö Oy Yrjönkatu 13 with respect to Consti Korjausurakointi Oy's
request for the initiation of arbitration proceedings dated 17 August 2018.
In its response to the Arbitration Institute of the Finland Chamber of Commerce,
Kiinteistö Oy Yrjönkatu 13 has denied claims stated by Consti Korjausurakointi
Oy in its request for the initiation of arbitration proceedings, and announced
to file a counterclaim against Consti Korjausurakointi Oy in the upcoming
arbitration proceedings. Arbitration proceedings initiated by Consti
Korjausurakointi Oy relate to disagreement concerning the construction project
for Hotel St. George.
Kiinteistö Oy Yrjönkatu 13 has tentatively notified to present claims against
Consti Korjausurakointi Oy for the amount of capital approximately up to EUR 20
million. The amount does not include VAT. In addition, Kiinteistö Oy Yrjönkatu
13 claims interest payments and compensation for legal expenses from Consti
Korjausurakointi Oy. Consti Korjausurakointi Oy considers the claims of
Kiinteistö Oy Yrjönkatu 13 to be unfounded.
Consti Group Plc announced on 17 August 2018 that Consti Korjausurakointi Oy has
initiated arbitration proceedings against Kiinteistö Oy Yrjönkatu 13. In the
arbitration proceedings, Consti Korjausurakointi Oy demands payments from
Kiinteistö Oy Yrjönkatu 13 based on the project management agreement signed on
21 December 2015 as well as on so-called rush contract signed on 1 December
2017, both of which concern the construction project for Hotel St. George. The
amount of capital of Consti Korjausurakointi Oy's initial settlement requirement
amount to approximately EUR 15 million. In addition, Consti Korjausurakointi Oy
demands interest payments and compensation for legal expenses.
According to Consti Group Plc's current estimate, the matter does not have an
effect on the earnings outlook for 2018. In the future, Consti Group Plc will
disclose information on the arbitration proceedings, on the final amounts and
solving of claims presented and on the relevance of this matter to the company's
financial position as necessary in connection with interim reports and by
separate releases, as necessary.
In accordance with Consti Group Plc's disclosure policy, major actions brought
by or against the company and other litigation issues are disclosed on a stock
exchange release.
CONSTI GROUP PLC
Further information:
Esa Korkeela, CEO, Consti Group Plc, Tel. +358 40 730 8568
Joni Sorsanen, CFO, Consti Group Plc, Tel. +358 50 443 3045
Distribution:
Nasdaq Helsinki Ltd
Major Media
www.consti.fi
Consti is a leading Finnish company concentrating on renovation and technical
services. Consti offers comprehensive building technology, pipeline renovation,
renovation contracting, façade renovation and other demanding construction and
maintenance services for residential and commercial buildings. In 2017, Consti
Group's net sales amounted to 300 million euro. It employs over 1000
professionals in renovation construction and building technology.
Consti Group Plc is listed on Nasdaq Helsinki. The trading code is CONSTI.
www.consti.fi
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