LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE January 19, 2007 at 9;10 a.m. LÄNNEN TEHTAAT TO FOCUS ON FOOD AND SELL MAJORITY SHAREHOLDING IN SUOMEN REHU LTD AND AVENA NORDIC GRAIN OY TO HANKKIJA-MAATALOUS OY Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy have today signed a share-purchase agreement whereby 51% of the shares in Suomen Rehu Ltd and Avena Nordic Grain Oy will be transferred to the ownership of Hankkija-Maatalous Oy. The transaction will be finally closed once the competition authorities have given their approval. The enterprise value of the business operations of Suomen Rehu and Avena has been agreed at EUR 81 million. The price for the 51 per cent of the shares in the companies to be sold will be about EUR 28 million. The purchaser will also assume responsibility for the net debts of Suomen Rehu and Avena at the moment when the closing takes place. The exact price for the shares will be determined on the basis of the assets and liabilities of the companies to be sold at the moment when the closing takes place. The transaction will not include the shares of the oil seed processing company Mildola Oy, which have been transferred to the ownership of Lännen Tehtaat plc. The sale of the majority shareholding is expected to take place in the second quarter of 2007 and generate a tax-exempt profit of about EUR 7 to 8 million. Lännen Tehtaat plc's board of directors will propose, as an exception to the company dividend policy, that the profit will be used for developing the company. In connection with the sale of the majority shareholding an option scheme has also been agreed under which Lännen Tehtaat will, if it wishes, have the right to sell the remaining 49% of the shares in Suomen Rehu Ltd and Avena Nordic Grain Oy to Hankkija-Maatalous. The latter, for its part, has a purchasing option for the remaining shares, which it will be able to put into effect at the earliest 15 months after the purchase of the majority holding. The combined net sales of the companies to be sold in 2005 was EUR 272 million and the operating profit under IFRS standards was EUR 7.4 million. The corresponding figures for January-September 2006 were EUR 198 million and EUR 7.0 million. There are about 330 people working for Suomen Rehu and Avena. After the sale, the Lännen Tehtaat Group will comprise the Food Division, the oil seed processing company Mildola Oy and the 49% holdings in the sold companies Suomen Rehu and Avena, which will report as associated companies. The Food Division will consist of Apetit Pakaste Oy, which manufactures frozen foods and jams, Apetit Kala Oy, which processes and sells fish products, and the service company Apetit Suomi Oy. Lännen Tehtaat plc will also have a 20 per cent interest in Sucros Ltd, which processes and sells sugar in Finland, and a 50% interest in the catering products company Ateriamestarit Oy. Once the transaction has been completed, the Lännen Tehtaat Group will be employing an average of 590 people. "Lännen Tehtaat plc's aim is to be one of the leading food companies in Finland. The company is actively seeking growth opportunities for its food business operations in the northern Baltic region. In order to be able to focus on food in line with its vision, Lännen Tehtaat has decided to sell the majority holdings in its feed and grain trade business operations. The arrangement will strengthen Lännen Tehtaat's room for manoeuvre and improve the company's chances of developing its food sector either through corporate acquisition or via other restructuring," says CEO Matti Karppinen. LÄNNEN TEHTAAT PLC Matti Karppinen CEO More details: Matti Karppinen, CEO, tel. +358 10 402 4001 Distribution: Helsinki Stock Exchange Main media www.lannen.fi Invitation to briefing A briefing will be held today, Friday January 19, 2007, at 11 a.m. in the Urho conference room at the Sokos Hotel Presidentti, Eteläinen Rautatienkatu 4, Helsinki. SOK CEO Kari Neilimo, Lännen Tehtaat CEO Matti Karppinen and Hankkija-Maatalous Oy Managing Director Ensio Hytönen will be presenting details of this corporate transaction. We look forward to seeing you. Lännen Tehtaat plc Hankkija-Maatalous Oy
LÄNNEN TEHTAAT TO FOCUS ON FOOD AND SELL MAJORITY SHAREHOLDING IN SUOMEN REHU LTD
| Source: Apetit Oyj