Piippo - Baling Nets and Baling Wires

Stocks
22

General Meeting on 25.3.2025, with the plan informed less than 3 weeks ago to sell the machines, spare parts, and trademark on the agenda.

Interesting, but Piippo does not seem to publish a shareholder list on its website, so it’s a bit of a guess who decides.
However, the Board has unanimously decided to propose the approval of the sale,
Shares: 1,292,747 shares, one vote per share

According to the investor pages, management holdings are
-Board member Olli-Pekka Piippo 11.2%
-Board member Kari Hirvonen 12.1%
-CEO 0 shares

In 2024, notifications totaling 79.3% have been received:
-Ville-Matti Piippo 11.20%
-Olli-Pekka Piippo: 11.21%
-Lasse Piippo: 11.21%
-Pekka Piippo: 33.53%
-Kari Hirvonen: 12.15%

Before the share issue (2015), Antti Piippo and Pekka Piippo each owned 42.5% of the shares, and the rest by Kari Hirvonen.
In the share issue (2015), 272,747 shares were subscribed at a price of 7.5 EUR.

At that time, the ownership of the original trio of owners was diluted approximately to the current levels, and indeed, Antti Piippo actually donated his shares to his children (Ville-Matti, Olli-Pekka and Lasse Piippo) in 2020.

In summary, if the Piippo family is in agreement, the General Meeting’s approval of the sale is a formality.

https://www.piippo.fi/fi/hallinnointi/
https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyjn-arvopaperimarkkinalain-9-luvun-10-pykalan-mukainen-ilmoitus-omistusosuudesta-ville-matti-piippo/
https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyjn-arvopaperimarkkinallain-9-luvun-10-pykalan-mukainen-ilmoitus-omistusosuudesta-olli-pekka-piippo-ja-pekka-piippo/
https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyjn-arvopaperimarkkinallain-9-luvun-10-pykalan-mukainen-ilmoitus-omistusosuudesta-lasse-piippo/
https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyjn-arvopaperimarkkinallain-9-luvun-10-pykalan-mukainen-ilmoitus-omistusosuudesta-kari-hirvonen/
https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyjn-hallituksen-jasen-antti-olavi-piippo-luopuu-piippo-oyjn-osakeomistuksesta/

https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyjn-listautumisanti-paattynyt-onnistuneesti-2/

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24

Piippo’s general meeting not so surprisingly decided to implement the letter of intent, and has now carried out the related co-determination negotiations, and will start an investigation into the future of the parent company, Manilla Oy, and is examining the possibility of a reverse listing.

If I, as a new shareholder, could express wishes for the reverse listing, then defence, defence, defence… :grinning:

Piippo Oyj has concluded the change negotiations concerning the entire personnel of the group, which have addressed the potential impacts of the previously announced letter of intent and the planned discontinuation of baling net production on the company’s operations. A total of 53 people were included in the change negotiations.

Following the change negotiations, the company has decided to cease the production of baling nets at the Outokumpu factory. The personnel reductions resulting from the decided measures affect a total of 39 people, and significant changes to employment relationships affect 5 people. The measures will be implemented by the end of 2025. The company justifies the decisions made based on the change negotiations with financial, production-related, and restructuring-related reasons.

On 12.2.2025, the company announced a letter of intent with the Portuguese Cotesi, Companhia de Têxteis Sintéticos S.A regarding the planned sale of the company’s baling net and twine machines and certain intellectual property rights. Piippo’s general meeting approved on 25.3.2025 the potential sale of the fixed assets specified in the letter of intent, as well as the trademarks and product names used by the company in its business. The company aims to implement the planned transaction substantially in accordance with the letter of intent announced on 12.2.2025. In addition, the company’s board of directors will begin an investigation into the future of the remaining parent company and Manilla Oy, and it is intended to decide on the future strategy by the time the transaction is completed. The board will assess the possibility of continuing business operations and explore other alternatives for the company, such as a corporate arrangement aimed at a reverse listing.

Decision on the sale of the company’s baling net and twine machines and certain trademarks, approval of the main terms of the transaction, and authorization of the board of directors to decide on the implementation of the transaction

The general meeting decided to approve the potential sale of the company’s baling net and twine machines and other fixed assets specified in the letter of intent, such as spare parts for the machines that may be subject to the transaction, as well as the trademarks and product names used by the company in its business, including the Piippo trademark, and the Main Terms:

• The subject of the transaction will be sold to Cotesi, Companhia de Têxteis Sintéticos, S.A;

• The subject of the transaction includes the company’s baling net and twine machines and other fixed assets specified in the letter of intent, such as spare parts for the machines that may be subject to the Transaction, as well as the trademarks and product names used by the company in its business, including the Piippo trademark; and

• The purchase price for the subject of the transaction is a total of 6 million euros;

and authorized the board of directors to decide on the final terms of the Transaction, however, substantially as presented in the company announcement published on 12.2.2025, and to carry out the actions required for the implementation of the Transaction, including but not limited to negotiating and signing sale and Transaction-related agreements, notifications, and other documents, and to confirm the implementation of the Transaction upon fulfillment of the necessary conditions.

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26

Piippo has now concluded the announced deal (which was previously a ‘non-binding letter of intent’) at the announced price of 6 million euros, which would make the company net debt-free.

Or the company would be left with
-Manilla business approx. 1.8 million euros, profit 8 thousand euros
-properties in Lempäälä and Outokumpu
-listed ‘company’ i.e. a potential ‘shell’ for a reverse listing
-finished product inventory and liabilities to deliver according to contractual obligations

The transaction will be carried out in two phases, so that in the first phase, the intellectual property rights subject to the transaction and certain of the Company’s baling and cable wire production machinery will be transferred, and in the second phase, the machinery related to baling net production. The first phase will be implemented within two (2) months and the second phase no later than twelve (12) months from the signing of the Sales Agreements. The Company estimates that the Transaction will be completed no later than during the first quarter of 2026.

https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyj-on-sopinut-sitovasti-omistamiensa-paalausverkko-ja-lankakoneiden-seka-tiettyjen-tavaramerkkien-myynnista-cotesi-s-a-lle/

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28

The first phase of Piipo’s production asset divestment completed as planned.
Naturally a positive thing, and one can probably be sure that the buyer has, at the latest by this stage, checked the remaining machines as well, which will be sold in the second phase according to the agreement in Q1 2026).

In addition to this, Piipo retains other assets to be sold / realized

in the first phase, the intellectual property rights subject to the Transaction as well as certain of the Company’s baling and cable wire production machines are sold, and in the second phase, the baling net production machines. The Company and Cotesi have today signed a closing memorandum concerning the first phase of the Transaction (Closing Memorandum). With the signing of the closing memorandum, the first phase of the Transaction has been completed as planned.

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29

The ‘dismantling’ of the company is progressing, Manilla Oy is preliminarily sold for an estimated 0.6 MEUR on a debt-free basis.

Edit: the company has 1.293 million shares, so the 0.6 MEUR, which sounds like a small amount, is approximately 46.5c/share

Insider information: Piippo Oyj has signed a binding preliminary agreement for the sale of the entire share capital of Manilla Oy to Inka Oy Sisäpiiritieto: Piippo Oyj on allekirjoittanut sitovan esisopimuksen Manillan Oy:n koko osakekannan myymisestä Inka Oy:lle | Kauppalehti

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Kurssien ja niiden muutosten kyselyt, kauhistelut ja hehkuttelut (Osa 4)
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@Opa Good job dissecting this case and @Thomas_Westerholm thanks for the comments! Here’s one special situation where one could take a lottery ticket. On the other hand, the bid-ask spread is wide and trading is non-existent even on a news day…

At least positive news is coming in now. Must follow the situation :+1:

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32

The spread is large when the market maker does not fulfill its obligations. As a Piippo shareholder, I wonder what Lago is paid for?

https://www.piippo.fi/fi/meista/ajankohtaista/piippo-oyjn-osakkeelle-lp-markkinatakaus-lago-kapital-oylta/

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34

I must commend Mikko Anttila for the work he is doing to unlock shareholder value. With the closure of the Russian market, turning around Piipo’s business on its own seemed very challenging due to the overcapacity of baling products, but under Mikko’s leadership, the company has indeed managed to release value from its balance sheet remarkably well. The icing on the cake would be if the company could ultimately find a partner interested in a reverse listing, who would also pay for the shell of the listed company.

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35

For some reason, the shell didn’t sell (?), or whatever the reason for the delisting…

Estimated net assets 3.9 MEUR, 1,292,747 shares, i.e., 3.017 EUR / share

Of that, 1.4 MEUR for the Outokumpu property and Lempäälä plot at book value, i.e., 1.083 EUR per share from the aforementioned.

And then, an unknown amount of money will probably go into those demolition works, and the costs during the demolition period…

Today’s share price 2.06 EUR.

27.10.2025 21:34:51 EET | Piippo Oyj | Inside Information

Piippo Oyj has commenced a study on the company’s delisting, i.e., the cessation of trading in its shares on the Nasdaq Helsinki First North marketplace. The company has previously announced that it is evaluating various possibilities for the company’s future, including the possibility of carrying out a so-called reverse listing with a company planning to list. The company’s Board of Directors has carefully assessed different options and concluded that delisting is the best alternative considering the company’s current situation and the interests of its shareholders. According to the current plan, the company will not have operational business after 2025.

The company has also initiated a plan for the company’s voluntary liquidation procedure and the distribution of assets to shareholders. According to the company’s estimate, the liquidation procedure can only be initiated after a 6-month protection period following the delisting. The liquidation procedure is estimated to take approximately 4-6 months, and its initiation is conditional on a decision by the General Meeting.

The company’s Board of Directors has assessed that the cessation of share trading does not cause significant harm to investors or the proper functioning of financial markets, and that the plan for the company’s delisting, liquidation procedure, and distribution of assets to shareholders is in the best interest of the shareholders in the company’s current situation. The Board’s estimate of the company’s net assets is 3.9 million euros, taking into account the company’s previously made binding agreements for the sales of a subsidiary and fixed assets, which will be realized by the end of the year. The estimate of net assets still includes an unsold industrial property in Outokumpu and a plot of land located in Lempäälä, which are valued in the estimate at their current book value, i.e., approximately 1.4 million euros. The cessation of share trading requires decisions by the General Meeting and the Nasdaq Helsinki Oy marketplace. The company plans to convene an extraordinary General Meeting in the coming weeks to decide on the cessation of share trading.

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36

It seems shareholders will have to hurry to start selling their shares while they can still get sure money for them :grinning_face_with_smiling_eyes:

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37

Good point in the sense that, according to the announcement, the proposed delisting would lead to a 10-12 month delay in realizing the value of the “sum of the parts,” i.e., the shareholder’s ownership…

Presumably, that money is relatively certain, at least that’s what was just confirmed, and without knowing the valuation level of the balance sheet value of those properties or plots of land…

Procrastination also incurs some costs, and the value of the shell company, or reverse listing, would not be realized. I don’t understand why; one would think there could very well be takers. Is there some tax advantage to delisting, and for whom…?

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38

That’s the property in Outokumpu.

In Lempäälä, the company owns a 1.8-hectare waterfront plot near the town center. One could imagine the municipality of Lempäälä being interested in buying that, and getting rid of it shouldn’t be a problem.

Just over 11k was bought when it was under €2, and I’m guessing the money will come to €3.

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39

How much demand is there for such an industrial property in that area? Weren’t these figures known in advance, and now it just came out that the shells can’t be sold? Somehow that €3/share sounds optimistic when one would think there would still be some costs along the way before the money is in the account sometime in just over a year?

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On the other hand, properties on the balance sheet may very well be undervalued when they are at acquisition cost/after depreciation.

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41

Let’s also add the property register ID for the Lempäälä waterfront plot, which is 418-431-3-33.

Lempäälä is, after all, in Tampere’s sphere of influence, and is classified as A-class in Hypo’s housing loan classification. That plot was probably marked M1 in the zoning plan, and the municipality of Lempäälä is likely interested in acquiring it.

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When you put 41

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Will a buyer be found for the Outokumpu complex - it’s unlikely to create strong competition.

But even one potential buyer would be enough. The price doesn’t even need to be very high, as the Outokumpu property and the Lempäälä plot are on the balance sheet for 1.4 million euros, which is just over 1€/share.

Outokumpu has a total area of 8730m2, of which some amount is industrial halls with offices, some amount is warm storage, and some part is cold storage.

8730 m2 x 160€/m2 = 1.4 million euros

In which case Lempäälä could be 0€

The big question is whether even one taker will be found!

Building description

A production/factory property located in Outokumpu, with one cold and one warm warehouse in its yard. The total area is 8730 m2, plus a large asphalted yard area. Hall heights are approximately 4 m, plus an area of approximately 700 m2 with a clear height of 9.4 m. 10 loading doors. Separate hot work area. LED lighting, fixed compressed air system. The total plot size is 9.313 ha. High electrical capacity: main fuse 10x250A/1600w readiness for electricity distribution/main switchboard 4000A/10 pcs of 3x300AXMK type feeder cables come to the property. Properties in good condition, functional and modern social/office facilities. Call and ask for more.

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It is indeed a strange situation that no one wants to take over the shell of a listed company. Of course, a First North listing is not as highly regarded as the main list, but it would be interesting to hear analysts’ views on why this is the case? However, the company is not a Fifax or Lifa Air, which could become a reputational burden.

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“Could be”. It’s practically a rounding error away from zero for those two. Forced sale in less than a year, and with the current plan, nothing habitable can be built there except with a special permit, so it doesn’t really have any value. But good pump, brothers, good pump.

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46

Well, perhaps the risk could be that as an unlisted company, things don’t progress, but rather costs accumulate for a longer period than the mentioned 6 months + 4-6 months. And the main owners receive cash flow as fees, and sales are somehow dubious.

But as you might see from the map, the location is excellent near the center, or even directly in the center, by and on the lake shore, and Lempäälä’s population is growing. 2020 23.8k → 2025 25k

Typically, municipalities buy raw land, but raw land can also be sold to other parties.

Of course, there are risks in selling the Outokumpu property, but an exorbitant price relative to the space doesn’t need to be achieved if a buyer is found.

Or do you have some better information, or are we going by emotion?

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