Pihlajalinna has increased its holdings in municipal joint ventures

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Pihlajalinna Plc                            Stock exchange release                                       29 June 2018 at 10:30

Pihlajalinna has increased its holdings in municipal joint ventures

Pihlajalinna has increased its holdings in Pihlajalinna group companies that are jointly owned with municipalities. Pihlajalinna now owns 81% of the share capital of Mäntänvuoren Terveys Oy and Kolmostien Terveys Oy as well as 90% of the share capital of Jokilaakson Terveys Oy. In addition, Pihlajalinna has signed a conditional agreement with Kuusiokunnat municipalities according to which it will increase its holding in Kuusiolinna Terveys Oy to 97%.

Pihlajalinna has paid a total of EUR 8.4 million for the completed share acquisitions. According to the conditional agreement, the sales price for the contemplated sale of Kuusiolinna Terveys shares is EUR 18.4 million.

Summary of companies:

Company Pihlajalinna's ownership 31 June 2018 Pihlajalinna’s ownership following the transactions Start of service production under the current contract Duration of contract
Jokilaakson Terveys Oy 51% 90% 2010
Kuusiolinna Terveys Oy 51% 97% (the transaction will become effective after the parties have signed a separate closing document) 2016 10+5
Mäntänvuoren Terveys Oy 66% 81% 2016 10+5
Kolmostien Terveys Oy 71% 81% 2015 10+5

Financial information from 2017:

Jokilaakson Terveys Oy Mäntänvuoren Terveys Oy Kuusiolinna Terveys Oy Kolmostien Terveys Oy
EUR 1,000 2017 2017 2017 2017
Revenue 26,180 42,375 91,259 34,255
Operating profit 3,146 2,840 5,068 731
Profit/loss 2,548 2,267 4,034 578
Share of profit/loss attributable to owners of the parent 1,300 1,496 2,058 411
Non-controlling interests’ share of profit/loss 1,249 771 1,977 168
Dividends paid to non-controlling interests -490 -931 -980 -343
Cash in hand and at bank (31 December 2017) 4,078 7,687 12,377 3,023

Service provision contracts and the shareholders' agreements of the companies will remain unchanged.

Further information:
Joni Aaltonen, CEO, +358 40 524 7270

Nasdaq Helsinki
Major media

Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services providers in Finland. The company serves private individuals, businesses, insurance companies and public sector entities, such as municipalities and joint municipal authorities. Pihlajalinna provides general practitioner services, specialised care, emergency and on-call services, a wide range of surgical services, occupational healthcare, dental care and wellbeing services. In addition, the company offers innovative social and healthcare service provision models to public sector entities.