Stockholm, 2010-10-15 18:00 CEST (GLOBE NEWSWIRE) --
The Board of Directors of RusForest AB (publ) ("RusForest" or the "Company") has prepared a prospectus with regard to the rights issue in the Company, which was resolved on the extraordinary shareholders' meeting that was held on 8 October 2010 (the "Rights Issue"). The prospectus has been approved by, and registered with, the Swedish Financial Supervisory Authority (Finansinspektionen) and is now available on RusForest's website, www.rusforest.com, and E. Öhman J:or Fondkommission AB's website, www.ohman.se.
The Board of Directors assesses that the net proceeds from the Rights Issue, given full subscription, of approximately SEK 422 million (including pre-funding) will strengthen the Company's financial position and consequently provide RusForest with the opportunity to invest in the following projects: (i) approximately SEK 96 million for the acquisition of LDK-3 and Infa, (ii) approximately SEK 75 million for upgrades and investments at LDK-3, (iii) approximately SEK 55 million for investments at RusForest Magistralny (includes approximately SEK 35 million which has been financed through the bridge financing from Vostok Nafta), (iv) approximately SEK 61 million to clear bottlenecks in existing sawmills (v) approximately SEK 27 million to increase harvesting capacity and improve infrastructure, (vi) repayment of the Bond which matures in February 2011, in the amount of SEK 57.5 million (including interest) and (vii) approximately SEK 50.5 million for investments in Ust Ilimsk and Boguchansky (which have been financed through the bridge financing from Vostok Nafta). Depending on the availability of external financing, the above figures may be adjusted.
As set forth in item (i) above, LDK-3 and Infa are acquired for an amount of, in total, approximately SEK 96 million. LDK-3 and Infa are acquired from Northern Shipping Company. As described in the press release dated 8 October 2010, the acquisition of LDK-3 and Infa is contingent of Russian anti-monopoly approval, which is expected to be attained before the end of the year. In connection herewith, the Board of Directors wants to inform that the Company, on top of LDK-3's current operations and RusForest's capacity development plans at the site, assesses that LDK-3's geographical location and logistical opportunities - with a large industrial site in direct connection to its own port and access to international waters - have the potential to provide synergies through cooperation with third parties. The Company is therefore evaluating the prospect of offering other parties the opportunity to establish themselves in connection with LDK-3 in order to utilize the full potential of the site. Such collaboration would further improve the project's profitability for RusForest.
The printed version of the prospectus is planned to be available as from 19 October 2010 at RusForest (Hovslagargatan 5, SE-111 48 Stockholm, Sweden) and E. Öhman J:or Fondkommission AB (Berzelii Park 9, SE-103 91 Stockholm, Sweden). The prospectus will also be distributed by mail to RusForest's shareholders with directly registered shares, and can also be ordered from E. Öhman J:or Fondkommission AB during business hours by telephone: +46 8 402 51 32.
For further information please contact:
Martin Hermansson, CEO, phone: +7 903 015 64 65, +7 985 921 92 32
or
Erik Löfgren, External Relations, phone: +7 910 417 7670
About RusForest AB (publ)
RusForest is the only listed Russian forestry and sawmilling company, with operations based in Eastern Siberia and long term leases covering over 850 thousand hectares of forest land. Alongside Brazil, Russia has the world's largest forest reserves by a significant margin, and Eastern Siberia is world renowned for its Pine and Larch of exceptional quality.
Through a series of acquisitions and development projects, RusForest increased sawnwood production by 37.9 percent in 2009, to 166,333 m3, in spite of weak market conditions. RusForest's goal is to develop into a leading independent integrated forestry and sawmilling company in Russia, with an annual harvest of 1.8-2.0 million m3 and an annual sawnwood production of 550,000-600,000 m3 during the coming four years.
IMPORTANT INFORMATION
In certain jurisdictions, the publication or distribution of this press release may be subject to legal restrictions and persons in those jurisdictions where this press release has been published or distributed should inform themselves about and abide by such legal restrictions.
This press release is not directed at persons located in the United States, Canada, Russia, Japan or Australia or in any other country where the offer or sale of the subscription rights, interim shares or new shares is not permitted. This press release may not be published or distributed, directly or indirectly, in or into the United States, Canada, Russia, Japan or Australia or any other country where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectuses, other offer documentation, registrations or other actions in addition to what follows from Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in such a manner that contravenes such restrictions or would require such additional prospectuses, other offer documentation, registrations or other actions.
This press release does not contain or constitute an invitation or an offer to acquire, sell, subscribe for or otherwise trade in shares, subscription rights or other securities in RusForest AB (publ). Any invitation to the persons concerned to subscribe for shares in RusForest AB (publ) will only be made through the published prospectus.
No subscription rights, BTAs (interim shares) or new shares will be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or any provincial act in Canada and may not be transferred or offered for sale in the United States or Canada or to persons resident in Canada or on account of such persons other than pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act or in such exempt cases that do not require registration in accordance with any provincial act in Canada, respectively.
RusForest AB's Certified Adviser on First North is E. Öhman J:or Fondkommission AB.
