Last checked at 20 Jan 2011 07:00
RUUKKI GROUP SELLS FINNISH HOUSE BUILDING BUSINESS TO CAPMAN
07:00 London, 09:00 Helsinki, 20 January 2011 - Ruukki Group Plc, Stock Exchange ReleaseRUUKKI GROUP SELLS FINNISH HOUSE BUILDING BUSINESS TO CAPMAN FOR EUR 76 MILLION
Ruukki Group Plc ("Ruukki") has signed an agreement to sell its Finnish house building business, Pohjolan Design-Talo Oy, to funds managed by CapMan. The total consideration for the shares of the company is approximately EUR 76 million in cash. The final price will be confirmed according to the balance sheet as of the closing date. Subject to certain conditions precedent being fulfilled, including the approval of the Finnish Competition Authority, the transaction is expected to be completed by the end of February 2011.
As previously disclosed, Ruukki has been evaluating alternative structures for reorganising its wood processing assets including its house building business. Based on its evaluation, Ruukki has concluded that the house building business is no longer a core business as Ruukki's aim is to grow as a vertically integrated mine-to-metals producer in selected minerals and alloys in selected geographical areas. Ruukki Group will use the sale proceeds from the transaction to grow, in line with the chosen strategy, as an integrated mine-to-metals producer.
Pohjolan Design-Talo Oy manufactures wood-framed ready-to-move-in houses as turnkey deliveries to Finnish households. Revenue in January-September 2010 was EUR 33.1 million with PBT of EUR 6.2 million. The value of the gross assets was EUR 36.5 million on 30 September 2010. Revenue for financial year 2009 was EUR 31.8 million with PBT of EUR 1.0 million. The value of the gross assets was EUR 21.3 million on 31 December 2009. The company had 154 employees on 31 December 2010.
In conjunction with the transaction the Pohjolan Design-Talo subgroup will be recorded as a discontinued operation in Ruukki's 2010 financial statements. Subject to completing the transaction, Ruukki expects to book a one-time gain on disposal of approximately EUR 40 million in the first quarter of 2011. Following the divestment, Ruukki Group's wood processing business area will comprise the sawmill and pallet businesses which remain under review.
RUUKKI GROUP PLC
Danko Koncar
Acting Managing Director
For additional information, please contact:
Ruukki Group Plc
Markus Kivimäki, Head of Corporate Affairs, +358 50 3495 687
markus.kivimaki@ruukkigroup.fi
Thomas Hoyer, CFO, +358 45 6700 491
thomas.hoyer@ruukkigroup.fiInvestec Bank PlcStephen Cooper, +44 20 7597 5104
stephen.cooper@investec.com
Ruukki Group is a natural resources company, with a wood processing business in Finland and a mining and minerals business in southern Europe and South Africa. The Company is listed on NASDAQ OMX Helsinki (RUG1V) and the Main Market of the London Stock Exchange (RKKI).www.ruukkigroup.fiCapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.6 billion in total capital. CapMan is listed on the Helsinki Stock Exchange.www.capman.com