RUUKKI GROUP SELLS FINNISH SAWMILL BUSINESS
Ruukki Group Plc (”Ruukki” or the “Company”) (LSE: RKKI, OMX: RUG1V) is pleased to announce that it has signed a definitive agreement to sell its 51 percent holding in Junnikkala Oy to Junnikkala Oy’s minority shareholders. The total consideration of EUR 6 million will be paid in cash in two parts: EUR 4.5 million on completion and EUR 1.5 million on 31 August 2011. The letter of intent to sell the Finnish sawmill business was announced on 31 January 2011.The transaction is expected to be completed by the end of June 2011 and is, inter alia, subject to approval at Ruukki’s Extraordinary General Meeting. The invitation to the Extraordinary General Meeting will be announced separately.
Junnikkala Oy is a producer of high quality timber. The revenue for the year ended 31 December 2010 was EUR 59.6 million and the profit before tax EUR 2.6 million. On 31 December 2010, the value of the gross assets was EUR 41.5 million and the company had 111 employees.
Completion of the transaction is not expected to have a material effect on Ruukki’s second quarter 2011 profit and will conclude the sale of Ruukki’s wood processing business. The proceeds will be used in the Company’s mining and minerals processing business.
RUUKKI GROUP PLC
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