CONSTI GROUP PLC STOCK EXCHANGE RELEASE 16 AUGUST 2019, at 3.15 p.m.
Consti Group Plc’s subsidiary Consti Korjausurakointi Oy has received a response and counterclaim presented by Kiinteistö Oy Yrjönkatu 13 relating to arbitration proceedings
Consti Group Plc's subsidiary Consti Korjausurakointi Oy has received on 16 August 2019 a response and counterclaim from Kiinteistö Oy Yrjönkatu 13 with respect to the statement of claim sent to the arbitral tribunal by Consti Korjausurakointi Oy on 28 February 2019. In its response and counterclaim, Kiinteistö Oy Yrjönkatu 13 has denied all claims stated by Consti Korjausurakointi Oy in its statement of claim, and has presented claims against Consti Korjausurakointi Oy for the amount of capital approximately EUR 11 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 Group Plc announced on 19 September 2018 that Kiinteistö Oy Yrjönkatu 13 had tentatively notified to present claims against Consti Korjausurakointi Oy for the amount of capital approximately up to EUR 20 million.
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. During the arbitration proceedings, the amount of capital of Consti's claims has been stipulated as approximately 13 million euro. In addition, Consti Korjausurakointi Oy demands interest payments and compensation for costs related to arbitration proceedings.
According to Consti Group Plc’s current estimate, the matter does not have an effect on the earnings outlook for 2019. 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’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
Esa Korkeela, CEO, Consti Group Plc, Tel. +358 40 730 8568
Joni Sorsanen, CFO, Consti Group Plc, Tel. +358 50 443 3045
Nasdaq Helsinki Ltd
Consti is a leading Finnish company concentrating on renovation and technical services. Consti offers comprehensive renovation and building technology services to housing companies, corporations, investors and the public sector in Finland’s growth centres. Company has four business areas: Housing Companies, Corporations, Public Sector and Building Technology. In 2018, Consti Group’s net sales amounted to 316 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