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2007-11-15 15:15:00 CET 2007-11-15 15:15:00 CET REGULATED INFORMATION HKScan Oyj - Company AnnouncementSCAN AB PROPOSES ACQUISITION IN SWEDENHKScan Corporation STOCK EXCHANGE RELEASE 15 November 2007, at 4.15pm SCAN AB PROPOSES ACQUISITION IN SWEDEN Scan AB, the company responsible for HKScan Corporation's Swedish business, has expressed an interest in acquiring the business of KLS Livsmedel. KLS is based in southern Sweden, where it engages in meatpacking in Kalmar and meat processing in Gothenburg. A cooperative owned by 2,800 meat producers, KLS Livsmedel has nearly 300 employees and its turnover in 2006 was SEK 905 million (ca. EUR 98 million). The acquisition would strengthen the food industry in Sweden and enhance beef production in particular in southern Sweden. The KLS meatpacking plant in Kalmar is of strategic significance to Scan and would make it possible for Scan to continue profitable growth in southern Sweden. Scan has on this date dispatched an offer to KLS members. The key elements of the offer are as follows: 1. Scan will pay a purchase price (SEK 30 million or ca. EUR 3.2 million) equivalent to the debt-free book value of assets less taxes. 2. In addition, Scan will pay a sum (ca. SEK 43 million or ca. EUR 4.7 million) that will restore the equity of KLS to cover the members' shares in the cooperative, provided that at the time of acquisition, KLS has equity of at least SEK 23 million (ca. EUR 2.5 million). Should the cooperative break even in the period between August 2007 and the acquisition date, the members' shares can be repaid in full. 3. The deal shall be executed as soon as possible, taking into account matters such as the legal status of KLS under the Act on Cooperatives. 4. KLS will be given a seat on Scan AB's Board of Directors. 5. KLS may continue to pursue the business of slaughter livestock procurement at its own discretion. Execution of the proposed offer is subject to normal due diligence. Scan submits that the proposed acquisition of KLS by Scan offers the best possible outcome to KLS members. KLS Livsmedel has been a loss-making enterprise in recent years, and the acquisition would provide a basis for the region's meat producers to build on their business as part of the leading meat company in Sweden. HKScan Corporation Kai Seikku CEO Further information is available from: managing director Magnus Lagergren, Scan AB, tel. +46 8 725 8103 DISTRIBUTION: OMX Nordic Exchange Main media www.hkscan.com |
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