Ruukki Group Plc, Stock Exchange Release, 11 September 2008 at 09:41 a.m.
In addition to the current preparations related to entering into global ferro
chrome business, Ruukki Group Plc's Board of Directors has decided to strengthen
the current House Building business segment's operations by redeeming all the
minority shareholder's shares in its subsidiary and by acquiring the business of
Gloria House Finland Oy.
Ruukki Group Plc has entered into a share purchase agreement whereby Ruukki
Group immediately acquires 9.9 % of Pohjolan Design-Talo Oy from Kimmo Kurkela,
the managing director of Pohjolan Design-Talo Oy. After the transaction, Ruukki
Group Plc owns all the shares in Pohjolan Design-Talo Oy. The purchase
consideration will be fully payable in cash, and totals about EUR 6.1 million,
of which a major part will be paid in conjunction with the closing of the
transaction. Kimmo Kurkela will continue as managing director for a transition
period up until a new managing director for the housing business will be
elected, after which Kimmo Kurkela continues being a member of the Board of
Directors of Pohjolan Design-Talo Oy. During the first half of 2008, Ruukki
Group's House Building business segment's revenue totalled EUR 24.8 million
(1-12/2007: EUR 62.4m), and EBIT for 1-6/2008 was EUR 4.9 million (1-12/2007:
EUR 13.3m).
Moreover, Pohjolan Design-Talo Oy has entered into a preliminary agreement to
buy, by the end of 2008 at the latest, all the business operations and related
intellectual property rights of Gloria House Finland Oy, currently owned by Esa
and Hannele Kurkela, with a fixed cash consideration of EUR 0.3 million. Gloria
House Finland Oy designs and makes, based on foursquare laminated beams and
gluelam pillars, modern wooden villas for private and public spaces. The company
is in research and development phase with certain preliminary houses delivered
to e.g. house fairs. Gloria House's revenue for financial year 2007 totalled EUR
0.0 million (1-12/2006: EUR 0.3m) and EBIT 0.0 million (1-12/2006: EUR 0.0m).
It has moreover been agreed that Pohjolan Design-Talo Oy will start
investigating opportunities to enter areal housing development projects with
multiple one-family houses to be sold or rented to private customers.
According to Alwyn Smit, Chairman of the Board of Ruukki Group Plc: “We see
long-term potential in the ready-to-move-in house building segment both in
Finland and abroad, even though the general market sentiment and demand is
currently softening. Pohjolan Design-Talo's financial performance has
historically been strong and its competitive edge can be utilised even in
downturn. Therefore, we are actively looking for ways, in a market with
restructuring expected to take place and provide opportunities, to strengthen
and reposition the House Building segment of Ruukki Group.”
RUUKKI GROUP PLC
ALWYN SMIT
CHAIRMAN OF THE BOARD
Ruukki Group Plc's shares are listed on OMX Nordic Exchange Helsinki in which
the shares of the Company are traded in the mid cap segment, in the industrials
sector.
For additional information, please contact:
Alwyn Smit
Chairman of the Board
Ruukki Group Plc
Telephone +358 50 442 1663 / +41 7960 19094
www.ruukkigroup.fi
Antti Kivimaa
Executive Vice President, Finnish Businesses
Ruukki Group Plc
Telephone +358 400 501 780
www.ruukkigroup.fi
Kimmo Kurkela
Managing Director
Pohjolan Design-Talo Oy
Telephone + 358 50 379 6900
www.designtalo.fi
This stock exchange release is based on a translation into English of a document
written in Finnish. In case of any discrepancies, inconsistencies or
inaccuracies, the Finnish version of the release shall prevail.