NYAB signed a settlement agreement with the city of Mikkeli (inside information)
NYAB Plc
COMPANY ANNOUNCEMENT
13 April 2023 at 15:30
NYAB signed a settlement agreement with the city of Mikkeli (inside information)
NYAB group company NYAB Finland Oy and Mikkeli Waterworks have signed a settlement agreement. The agreement aims at settling the dispute between NYAB Finland Oy and Mikkeli Waterworks, a municipal enterprise owned by the city of Mikkeli, that has been subject to legal proceedings. According to terms and conditions of the agreement, Mikkeli Waterworks shall pay NYAB a total compensation of EUR 9.2 million. NYAB estimates that once the settlement agreement is executed, it has a positive cashflow impact of approximately EUR 9.2 million and a positive non-recurring result impact of approximately EUR 3.6 million. The execution is expected to occur in the second quarter of 2023.
Execution of the agreement is subject to a final decision by the city of Mikkeli. The agreement is to be processed in the City Board on 17 April 2023. Decision of the City Board becomes final in accordance with the Local Government Act. In case the decision of the City Board has not become final until 31 July 2023, the settlement agreement will expire.
The dispute between the parties is based on NYAB Finland Oy’s two project agreements that Mikkeli Waterworks terminated in the middle of the projects in March 2020. The South Savo District Court delivered a judgment in December 2022 and ruled that Mikkeli Waterworks was not entitled to terminate the agreements. The judgement of the District Court is not final. With the execution of the settlement agreement, Mikkeli Waterworks undertakes not to appeal the verdict.
Contacts
- Aku Väliaho, CFO, NYAB Oyj, +358 (0)40 559 2772, aku.valiaho@nyabgroup.com
- Essi Myllylä, Legal Director, NYAB Finland Oy, +358 (0)40 195 0500, essi.myllyla@nyabgroup.com
About NYAB Oyj
NYAB is a builder of a clean future with decades of experience in complex and demanding projects. We are enabling green transition in the Nordics by providing engineering, construction, and maintenance services to public and private sector clients regarding renewable energy and sustainable infrastructure. NYAB is headquartered in Oulu and it has more than 350 employees at different locations in Finland and Sweden.
NYAB Plc's Certified Adviser is Augment Partners AB, info@augment.se, phone +46 8 604 22 55.