November 20, 2006
08:00 CET
Closure of Ovako sale
Rautaruukki Oyj Stock Exchange Release 20 Nov. 2006 at 9.00
In July 2006, Rautaruukki Corporation, AB SKF and Wärtsilä Corporation signed an
agreement to sell the operating companies owned by Oy Ovako Ab to a company owned
by Hombergh Holdings BV shareholders, WP de Pundert Ventures BV and Pampus
Industrie Beteiligungen GmbH & Co. KG. The sale has now been closed.
The total price for the shares is about EUR 660 million, comprising a cash
payment at closing of approximately EUR 535 million, a deferred cash payment of
EUR 15 million to be paid in July 2008 and an interest-bearing vendor note of EUR
110 million to be paid within 3-6 years of closing.
Rautaruukki owned 47.0 per cent of Ovako. The tax-free capital gain on the
transaction and the share of Oy Ovako Ab's result generated after 30 June 2006
will furthermore be stated in Rautaruukki's income statement as part of the
result of associate companies, which is estimated to total about EUR 100 million.
The Ovako transaction as well as the earlier closed sale of the Nordic
reinforcing steel business marked the completion of Rautaruukki's withdrawal from
the manufacture of long steel products. The divestment of long steel products has
generated cash flow and freed up resources that can be invested in profitable
growth in the solutions businesses, particularly in central eastern Europe and
Russia.
Additional information is available from:
Mikko Hietanen, CFO, tel. +358 20 592 9030
Rautaruukki Corporation
Taina Kyllönen
VP, Corporate Communications
Rautaruukki supplies metal-based components, systems and integrated systems to
the construction and mechanical engineering industries. The company has a wide
selection of metal products and services. Rautaruukki has operations in 23
countries and employs 12,000 people. Net sales in 2005 totalled EUR 3.7 billion.
The company's share is quoted on the Helsinki Exchanges (Rautaruukki Oyj: RTRKS).
The Corporation has used the marketing name Ruukki since 2004.
DISTRIBUTION
Helsinki Exchanges
Principal Media
www.ruukki.com