LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE May 28, 2007 CHANGE IN STRUCTURE OF THE MAJORITY SHAREHOLDING SALE OF SUOMEN REHU LTD AND AVENA NORDIC GRAIN OY On January 19, 2007 Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy signed a share-transaction agreement whereby 51% of the shares in Suomen Rehu Ltd and Avena Nordic Grain Oy would be transferred to the ownership of Hankkija-Maatalous Oy. The final closing of the transaction required approval by the competition authorities. At the beginning of March the competition authorities decided that the further investigation of the merger notification lodged by Hankkija-Maatalous was necessary. The merger of the grain trading operations of Avena Nordic Grain Oy with the grain trading by Hankkija-Maatalous Oy is believed to create a strong market position from the perspective of competition, so the parties to the sale have decided that Avena will not be included in the sale. The competition authorities are continuing their investigation. Lännen Tehtaat plc and Hankkija-Maatalous Oy have agreed today that the majority shareholding sale of Suomen Rehu Ltd will go ahead. The enterprise value of the business operations of Suomen Rehu has been agreed at EUR 71 million. The price for the 51 per cent of the shareholding in the company to be sold is about EUR 24 million. The purchaser will also assume responsibility for the net debts of Suomen Rehu 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 by the end of May. The sale of the majority shareholding in Suomen Rehu is expected to generate a profit of about EUR 6 million. 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 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. Lännen Tehtaat's consolidated net sales in 2006 amounted to EUR 409 million and the operating profit to EUR 14.5 million. The Lännen Tehtaat Group employed 981 people during 2006. The net sales of the feed operations to be sold was about EUR 190 million and the operating profit under IFRS standards was EUR 9.2 million. There were an average of 319 people working for Suomen Rehu. Avena Nordic Grain will continue its grain trading operations as usual as part of the Lännen Tehtaat Group. The net sales of Avena Nordic Grain amounted to EUR 96 million in 2006 and the operating profit to EUR 2.0 million. There were an average of 29 people working for Grain trading operations. Lännen Tehtaat's vision is to be one of the leading Finnish food companies, and the company will continue to single-mindedly implement its vision. The sale of the feed operations will strengthen Lännen Tehtaat's financial room for manoeuvre and improve the company's potential for developing the food sector through corporate acquisitions and other corporate restructuring. 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
CHANGE IN STRUCTURE OF THE MAJORITY SHAREHOLDING SALE OF SUOMEN REHU LTD AND AVENA NORDIC GRAIN OY
| Source: Apetit Oyj