7 Nov 2011 12:35
7 November 2011
POWERFLUTE OYJ
RECEIPT OF SECOND INSTALMENT OF SCHEUFELEN CONSIDERATION
Powerflute Oyj ("Powerflute" or the "Group"), the packaging and paper group, today confirmed that the second instalment of the cash consideration for the disposal of the Papierfabrik Scheufelen group of companies (together "Scheufelen") of €7.5m was received by the Group as expected on Friday, 4 November 2011.
Scheufelen, which represented the whole of the Graphic Papers business segment, was sold to Paper Excellence BV, a privately owned pulp and paper producer, for total consideration of €38.5m, comprising cash consideration of €32.5m (of which €25.0m was paid at completion on 4 May 2011) and the assumption of €6.0m of debt by Paper Excellence.
Dermot Smurfit, Chairman of Powerflute said:
"We are pleased to have received the second instalment of the cash consideration for the disposal of Scheufelen. We believe the disposal of Scheufelen to Paper Excellence was a successful outcome for our shareholders. Powerflute achieved a significant return on its investment in a little over two years and is in a strong position to continue to pursue its strategy of seeking opportunities to acquire underperforming businesses in the paper and packaging sectors."
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For further information, please contact:
PowerfluteOyj Dermot Smurfit (Chairman) Marco Casiraghi (Chief Executive Officer) David Walton (Chief Financial Officer)
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c/o Billy Clegg, FTI Consulting +44 20 7269 7157 |
Collins Stewart (Europe) Limited Piers Coombs Mark Dickenson
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+44 20 7523 8350 |
E.Őhman J: or Fondkommission AB Ms Arja Väyrynen
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+358 9 8866 6029 |
FTI Consulting Oliver Winters Georgina Bonham
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+44 20 7831 3113 |
FTI Consulting (Ireland) Mark Kenny Jonathan Neilan
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+353 1 663 3686 |
About Powerflute
Powerflute Oyj ("the Company" or "Powerflute") is a paper and packaging group quoted on the AIM market of the London Stock Exchange (Ticker: POWR) and on First North, the alternative market of the OMX Nordic Exchange Stockholm AB (Ticker POW1V). Through its subsidiary Savon Sellu Oy, the Group operates a paper mill in Kuopio, Finland which produces a specialised form of semi-chemical fluting made from locally sourced birch. Corrugated boxes manufactured using Nordic semi-chemical fluting demonstrate strength and moisture resistance and are used for transportation of fruit and vegetables, high-value industrial goods such as electrical appliances and automotive components. The Kuopio mill has the capacity to produce up to 300,000 tonnes per annum and is one of only three suppliers of Nordic semi-chemical fluting in Europe.