The shareholders of Arkhangelsk PPM to discuss the Pulp Mill Holding proposal
The Board of Directors of Arkhangelsk PPM has decided to hold an extraordinary general meeting of shareholders on March 9, 2011. As reported by the company, the meeting will be held in vote in absentia principle. The shareholders shall give their approval to major interrelated transactions.
On December 24, 2010 the Board of Directors of Arkhangelsk PPM decided to accept the mandatory bid for remaining shares acquisition (in total amount of 12 thousand and 40 pcs) from the Austrian company Pulp Mill Holding GmbH. The proposed price of RUR 13 thousand 830 for each share is deemed to be fair and reasonable.
The company reminds that Pulp Mill Holding acquired 97.42% of voting shares of Arkhangelsk PPM on November 17, 2010 and paid 13 thousand 824 rubles 35 kopec per each share, while a market price of PPM ordinary share was 13 thousand 375 rubles as of September 30, 2010. Shares purchased by the Austrian holding had been previously held by Basic Element company.
Arkhangelsk PPM is one of the leading wood chemical manufacturers in RF and Europe.
In 2009 the share of the mill in total Russian pulp and paper production amounted to: 18% for containerboard, 11% for pulp, school exercise-books for 33%. By results of the 3rd quarter 2010 pulp cooking has increased by 7,5% and amounted to 637,9 thsd. t. in comparison with the previous year. Sales revenue from sales of goods and services increased in 1.3 times and totaled RUR 11 619 mln. Profitability of sales grew up to 21%. Net profit amounted to RUR 1 691 mln. against RUR 249,7 mln., gained for 9 months of 2009.