Helsinki, Finland, 2011-02-17 14:00 CET (GLOBE NEWSWIRE) --
HONKARAKENNE OYJ Stock Exchange Release 17 February 2011 at 3:00 PM
HONKARAKENNE LIQUIDATES ITS HOLDINGS IN KARJALAN LISENSSISAHA INVEST OY
In a move to focus on its core business, Honkarakenne sells its 37.5% holding in Karjalan Lisenssisaha Invest Oy to FM Timber Team Oy. The parties to the deal have agreed not to publish the trading price. It was agreed that the trading price be paid in installments by 30 November 2011.
Honkarakenne’s holding in Karjalan Lisenssisaha Invest Oy and in the Karlis companies, which the former owns, has enabled Honkarakenne’s participation in the sawmill business in Russia. With the share transaction concluded now, Honkarakenne terminates a section not part of its core business. Honkarakenne’s core business will concentrate on the manufacture of high-quality log houses.
In future, Honkarakenne will purchase sawn timber from FM Timber Team Oy and other sawn timber suppliers. This has no immediate impact on Honkarakenne’s business operations.
The deal has a non-recurring positive impact on Honkarakenne’s result in the first quarter.
In connection with the deal, it was agreed that Honkarakenne’s obligation to guarantee the loan taken out to develop Karjalan Lisenssisaha Invest Oy will end.
Karjalan Lisenssisaha Invest Oy owns sawn timber companies operating in Russia.
HONKARAKENNE OYJ
Esa Rautalinko
President and CEO
Further information:
President and CEO Esa Rautalinko, tel. +358 400 740 997, esa.rautalinko@honka.com
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority