Last checked at 24 Sep 2010 15:15
Ruukki Group Oyj / Miscellaneous 24.09.2010 16:15 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- 15:15 London, 17:15 Helsinki, 24 September 2010 - Ruukki Group Plc, Stock Exchange Release UPDATE ON THE DISPUTE WITH THE VENDORS OF MOGALE ALLOYS Ruukki Group Plc ('Ruukki' or the 'Company') (LSE: RKKI, OMX: RUG1V) wishes to update shareholders on the dispute with certain vendors ('Vendors') of Mogale Alloys (Proprietary) Limited ('Mogale Alloys') regarding the acquisition of Mogale Alloys. Ruukki acquired Mogale Alloys in May 2009. Payment of 30% of the full purchase price was conditional and deferred upon certain conditions, as outlined in the acquisition agreement, being met before May 2014, otherwise none of this portionof the purchase payment is due. Ruukki has every intention to comply with its obligations, as and when they arise. The Vendors have already been paid in excess of 70% of the purchase price. As previously disclosed in the London Stock Exchange listing prospectus in June 2010, there is a bona fide dispute as to whether certain conditions, clearly specified in the acquisition agreement, have been met. Payment of the remaining ZAR 600 million (EUR 63.6 million), due under the acquisition agreement is only triggered when the last, remaining condition in relation to each of the four furnaces acquired with Mogale Alloys has been met. Ruukki has received a notification that the Vendors have commenced legal actionsin South Africa against the Company relating to the remaining ZAR 600 million, which represents 30% of the full purchase price for Mogale Alloys, along with a claim for interest of ZAR 88.2 million (EUR 9.3 million). Ruukki has already recorded the majority of the claimed amount as a liability in Ruukki's consolidated balance sheet. The result of the court case is, therefore, not expected to have any significant negative effect on the financial status of the Company in any event. The acquisition agreement provides that where there is a dispute in regard to whether or not amounts are due and payable, such a dispute is to be referred to an independent attorney for determination. The Vendors have nevertheless instituted legal proceedings against Ruukki, who will vigorously defend the claim. Furthermore ZAR 12 million (EUR 1.3 million), of the remaining ZAR 600 million (EUR 63.6 million), was erroneously paid to the Vendors after the Vendors falsely alleged that one of the furnaces had met all of the conditions. It is Ruukki's intention to claim this amount back. Once Ruukki ascertained independent legal and environmental expert opinion, which clearly concluded thatthe Vendors have not complied with all the conditions, Ruukki informed the Vendors that the outstanding payment amount would not be due and payable until all of the conditions are met, as specified in the acquisition agreement. RUUKKI GROUP PLC Alwyn Smit CEO Ruukki Group is an industrial group focusing on minerals and wood processing businesses. Ruukki Group Plc's shares are listed on NASDAQ OMX Helsinki and the London Stock Exchange. For additional information, please contact: Ruukki Group Plc Alwyn Smit, CEO: +44 20 7368 6763 Alex Buck, IR: +44 7932 740 452 www.ruukkigroup.fi Investec Bank plc Stephen Cooper: +44 20 7597 5104 Pelham Bell Pottinger Charles Vivian: +44 20 7861 3126 James MacFarlane: +44 20 7861 3864 News Source: NASDAQ OMX 24.09.2010 DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: Ruukki Group Oyj FinlandPhone: Fax: E-mail: Internet: ISIN: FI0009800098Category Code: MSCLSE Ticker: RKKISequence Number: 580Time of Receipt: Sep 24, 2010 16:15:02 End of Announcement DGAP News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.