2007-11-15 15:15:00 CET

2007-11-15 15:15:00 CET


REGULATED INFORMATION

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HKScan Oyj - Company Announcement

SCAN AB PROPOSES ACQUISITION IN SWEDEN


HKScan 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
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www.hkscan.com