CONSTI GROUP PLC STOCK EXCHANGE RELEASE 17 AUGUST 2018, at 9.00 a.m.
Consti Group Plc's subsidiary Consti Korjausurakointi Oy initiates arbitration proceedings against Kiinteistö Oy Yrjönkatu 13
Consti Group Plc's subsidiary Consti Korjausurakointi Oy has initiated arbitration proceedings in accordance with the Arbitration Rules of the Finland Chamber of Commerce against Kiinteistö Oy Yrjönkatu 13, which relates to the construction project for Hotel St. George. This disagreement has arisen between Consti Korjausurakointi Oy and Kiinteistö Oy Yrjönkatu 13 relating to the project management agreement signed on 21 December 2015, which concerns the construction project for Hotel St. George. In addition, the disagreement relates to a so-called rush contract signed on 1 December 2017. The construction project for Hotel St. George has been completed and handed over to the client.
Consti Korjausurakointi Oy demands payments from Kiinteistö Oy Yrjönkatu 13 based on the above-mentioned contracts. Prior to initiating the arbitration proceedings, both parties have presented their respective claims relating to the project. The respective claims of each party to be presented in the matter will be finally identified during the arbitration proceedings. According to the current estimate, the amount of capital of Consti's settlement requirement would be approximately EUR 15 million. To the best of its ability, Consti has taken the disagreement into consideration in its financial reporting. According to Consti's current estimate, the matter does not have an effect on the earnings outlook for 2018. In the future, Consti will disclose information on this matter, on the final 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
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