Regulatory News:
In order to satisfy one of the conditions set by the EU Commission for approval of the combination between Billerud and Korsnäs, an agreement has been signed with SwedPaper AB ("SwedPaper") concerning divestment of a paper machine (PM2) at the Gävle production unit. Production at PM2 in 2012 accounted for approximately 2% of BillerudKorsnäs' total combined sales volume.
Under the agreement, PM2 at the Gävle production unit will be sold to SwedPaper. The machine produces kraft and sack paper. The PM2 operation employs approximately 60 people, who will be offered employment with SwedPaper. Other operations at the Gävle production unit will not be affected by the sale and will remain in BillerudKorsnäs' ownership.
The parties have signed long-term commercial agreements, under which BillerudKorsnäs will inter alia supply input items such as pulp, steam and water to SwedPaper. Pricing for pulp will be in line with the market. Under the conditions of the agreement, BillerudKorsnäs will sell SwedPaper an annual volume of pulp amounting to a maximum of 66 000 tons. Sales of pulp to PM2 will be accounted for in the Packaging Paper Business Area. At BillerudKorsnäs, the operations of PM2 have been accounted for under Other units.
The disposal will not in any way affect the synergy and cost-cutting programme announced earlier for the BillerudKorsnäs Group.
The transaction is conditional upon the approval of the European Commission and from relevant authorities.
Cederquist is the legal advisor and Erik von Ehrenheim is the financial advisor to BillerudKorsnäs in connection with the transaction.
SwedPaper AB, is a new started company that has been established with the purpose to acquire PM2. Behind SwedPaper stands four private investors Mikael Colebring, Peter Ekman, Lars-Åke Brännström och Lars-Eric Boreström (through their separate companies) all with extensive experience in entrepreneurship, particularly in the paper industry. SwedPaper has reached agreement with Ekman Co, which means that Ekman Co will distribute PM2's products. The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 07.30 CET, 6 May 2013.
BillerudKorsnäs Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. BillerudKorsnäs has a world-leading market position within primary fibre-based packaging paper. The company has annual sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm. www.billerudkorsnas.com
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Contacts:
BillerudKorsnäs
Vice President and COO
Christer Simrén, +46 (0)70 795 11 10
or
Mill Manager, BillerudKorsnäs Gävle
Ulf Eliasson, +46 (0)26 15 10 00
ou
Investor Relations Financial Media Director
Sophie Arnius, +46 (0)8-553 335 24 or +46 (0)70-590 80 72
