A letter of intent regarding the new ownership structure of
Metsä-Botnia>
A letter of intent regarding the new ownership structure of Metsä-Botnia
(Thomson Reuters ONE) - M-real Corporation Stock Exchange Release 15 July 2009 at 14:00M-real Corporation's associated company Oy Metsä Botnia Ab and itsowners, M-real, Metsäliitto Cooperative and UPM-Kymmene Oyj, havesigned a letter of intent regarding the divestment of the pulp milland forests located in Fray Bentos, Uruguay, to UPM.Once the transaction is closed, M-real's net debt will decrease byaround EUR 550 million, also taking into account the change ofMetsä-Botnia's consolidation method in M-real's consolidatedfinancial accounts. Cash proceeds to be received by M-real is aroundEUR 300 million. M-real will use the proceeds for debt repayments.The arrangement will not have a significant impact on M-real'sequity.After the closing of the transaction, M-real will change theconsolidation method of Metsä-Botnia in its consolidated financialaccounts and process its ownership in Metsä-Botnia as an associatedcompany according to IAS 28. As a result of the transaction and thechange in the consolidation method, approximately EUR 250 million ofconsolidated net debt will leave M-real Group. The closing of thetransaction and the change in the consolidation method ofMetsä-Botnia are estimated to decrease M-real's annual sales byaround EUR 250 million and to slightly improve the result beforetaxes compared to the first quarter 2009.The closing of the transaction is subject to approvals by therespective parties' Board of Directors, the execution of finalagreements, conclusion of negotiations with financing parties andapproval of the competition authorities. The transaction is estimatedto be closed during the last quarter of 2009. After the closing ofthe transaction M-real owns 30 % of Metsä-Botnia, MetsäliittoCooperative 53 % and UPM 17 %.M-real's Board of Directors has processed and approved the letter ofintent acting without those of its members who are dependent onMetsäliitto Cooperative. At the request of M-real's Board ofDirectors Handelsbanken Capital Markets has issued a FairnessOpinion, according to which the transaction is financially fair fromthe point of view of M-real's shareholders. Castren & Snellman Oy,Attorneys-at-law, provides legal advice in the transaction."Our need for eucalyptus pulp decreased significantly as a result ofthe divestment of the Graphic Papers business at the and of lastyear, which is why the Metsä-Botnia's Uruguay-based pulp mill becamestrategically less important for M-real. Centralising Metsä-Botnia'sproduction in Finland supports M-real's strategy in packagingbusiness: high-quality Finnish pulp is an essential raw material forpaperboard. As a result of this transaction, the net debt and pulpsurplus of M-real will clearly decrease. This transaction whenclosed, together with the well-progressed, still ongoing strategicreview of the paper business, have considerably renewed and restoredM-real," says Mikko Helander, CEO of M-real.M-real will arrange a conference call and webcast for analysts todayat 5.30 p.m. Finnish time. Participating in the call will be CEOMikko Helander and CFO Matti Mörsky. From Finland please dial 0800112 469 and from other countries +44 (0) 1452 559 645. The livewebcast can be accessed at http://qsb.webcast.fi/mreal/For more information:Matti Mörsky, CFO, tel. +358 10 465 4913Juha Laine, Vice President, Investor Relations and Communications,tel. +358 10 465 4335This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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Datum: 15.07.2009 - 13:00 Uhr
Sprache: Deutsch
News-ID 3588
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