An unknown buyer signed a letter of intent to acquire Lehto Asunnot Oy and Lehto Tilat Oy and Lehto Components Oy and Insinööritoimisto Mäkeläinen Oy from Lehto Group Oyj (HLSE:LEHTO) for ?3 million on October 24, 2023. According to the Letter of Intent, the debt-free value of the Target Companies is ?11.3 million in the aggregate and after deducting the bank liabilities of Lehto, Lehto would receive a cash purchase price of approximately ?3 million for the sale of the Target Companies upon completion of the proposed Transaction. After completion of the proposed Transaction the parent company would retain cash, sundry assets and sundry liabilities of approximately net ?5?8 million in the aggregate with cash and cash equivalents representing approximately ?1?2 million of such net figure. In addition, the parent company would retain the convertible bond of ?15 million. Assuming that the convertible bond, or a material proportion thereof, will not be converted into equity of Lehto, the retained net assets of Lehto after completion of the proposed Transaction are expected to be negative. The conclusion of the final transaction agreement is expected after the Board of Directors of Lehto will convene an Extraordinary General Meeting to decide on the approval of the Transaction. The signing of the final transaction agreement is subject to, among other things, the completion of the Purchaser?s due diligence review to the satisfaction of the Purchaser, approval for the transfer of certain liabilities of Lehto to the Target Companies by Lehto?s financing partners and the convertible bond holders? meeting supporting the Transaction. The completion of the Transaction is also subject to other uncertainties typical for M&A transactions. The Letter of Intent signed today does not obligate the parties to complete the Transaction or any similar arrangement. The transaction is intended to complete the Transaction during the last quarter of 2023.

An unknown buyer cancelled the acquisition of Lehto Asunnot Oy and Lehto Tilat Oy and Lehto Components Oy and Insinööritoimisto Mäkeläinen Oy from Lehto Group Oyj (HLSE:LEHTO) on December 18, 2023.