Neo Industrial sells 2 Russian cable companies
The Neo Industrial Group, a Finnish entity that invests in industrial companies, announced that it has sold two cable companies to an unnamed buyer.
A press release said that the two companies are OAO Expokabel and ZAO Reka Kabel, the Group's cable manufacturing companies in Russia. OAO Expokabel manufactures special cables for marine engineering, oil and gas industry, as well as for nuclear power plants. ZAO Reka Kabel is specialized in manufacturing medium voltage cables. The main market area of the companies is Russia, constituting 10 % of cable segment's net sales in 2012, it said.
Reka Cables Ltd., Cable segment's company, based in Finland, will continue selling and marketing Finnish-made cables in Russia and CIS countries through its subsidiary in Russia, the release said. The agreement, it said, has no effect on the operation of Reka Cables Ltd. "The transaction is expected to be finalized during May and having simultaneously positive influence on the liquidity position of Neo Industrial Group."
Per the company's website, Neo Industrial acquired Reka Cables, Ltd., in 2007, and later that same year it acquired a share of Nestor Cables, Ltd., a manufacturer of fiber optic cables. In 2008, Neo Industrial acquired a majority share of the Russian OAO Expokabel to strengthen Neo's Russian business operations. "Russia holds great growth potential for cable business. There is a large number of small companies on the market, which may enable Neo Industrial to rise among the biggest cable manufacturers by acquisitions."