Aug 21, 2012. /Lesprom Network/. Neo Industrial Plc's (Neo Industrial) Board of Directors has signed the demerger plan. The purpose of the demerger is to carry out the separation of Neo Industrial Group's businesses so that after the entry into force of the demerger, the fibres business will be operated in a newly established public company, Avilon Plc, and its Group. The cable business will remain in the demerging company, Neo Industrial, and its Group. Furthermore, shares in Finndomo Ltd will remain in the demerging company. The demerger will have no impact on the cable business and the single family housing business. It is intended that Avilon Ltd's trade name will be changed into Avilon Fibres Ltd in connection with the entry into force of the demerger, as the company said in the press release received by Lesprom Network. Neo Industrial's Board of Directors believes that the demerger will clarify the business structures and the price formation of the securities issued by both the demerging and the recipient company, enhance operative transparency and, thus, contribute to the value appreciation of the shareholders' shares in the long term. Furthermore, the Board of Directors believes that the demerger will improve the possibilities to utilize the licences related to the fibres business and other intellectual property rights on a commercial basis and to increase the sales of special fibres. The restructuring program of the existing Avilon Ltd was approved on 28 June 2012. The Board of Directors proposes that the shareholders of the demerging company will receive as demerger consideration one class A share of the recipient company for each class A share of the demerging company and one class B share of the recipient company for each class B share of the demerging company. No demerger consideration will be given based on class B treasury shares held by the demerging company. The demerger plan enclosed in its entirety to this release includes the Board of Director's proposals to the extraordinary general meeting to be convened towards the end of 2012. Avilon Plc will apply for the listing of its class B shares on the stock exchange list maintained by Nasdaq OMX Helsinki Ltd or, alternatively, on another market place after the prerequisites of listing have been met after the demerger. The listing on the exchange list requires e.g. strengthening of the working capital structure of the new Avilon Group to be established in the demerger.