10/31/2018 | Press release | Distributed by Public on 10/31/2018 09:39
Lehto Group Plc
Stock Exchange Release
31 October 2018 at 5.30 p.m.
Lehto Group Plc ('Lehto') and Citycon Plc ('Citycon') have decided to terminate negotiations concerning the agreement on construction of Lippulaiva shopping center in Espoo. Citycon has acted as developer and Lehto as contractor in the process. The parties have developed the project together with the designers for three years and tried to reach an agreement which would serve both Citycon's and Lehto's operational and financial targets but this agreement was not reached.
Besides the design work Lehto has during the years 2016 - 2018 performed the demolition of the old shopping center, large-scale groundworks and built the temporary shopping center Pikkulaiva. Lehto does not exclude an option to be part of the construction if Lehto's contractual, operational and financial targets are met.
The end of the negotiations does not have significant effect on Lehto's net sales and operating profit in year 2018 and it does not change the financial outlook published earlier by Lehto.