SCA acquires remainder of shares outstanding in Scaninge
SCA has exercised the right to acquire 41% of the share capital (50% of
the voting rights) in Scaninge from Graninge AB. In accordance with the
terms of the current purchase option, the exercise price for the entire
block of shares is SEK 4.9 M. Scaninge owns 390,000 hectares of
productive forestland and exercise of the purchase option means that SCA
secures full and long-term strategic control of the timber flow in the
Computed and on an annual basis, the transaction results in the Group's
operating profit increasing by SEK 160 M, earnings after net financial
items rising by SEK 50 M and net earnings by SEK 35 M. In addition,
consolidation of Scaninge will increase SCA's net debt by SEK 2.200 M.
The acquisition results in negative goodwill of SEK 400 M, which SCA
will charge to earnings during the fourth quarter of 2003. This negative
goodwill is fully attributable to the forestland that was contributed by
Graninge AB when Scaninge was formed.
As part of the preparation of the year-end financial statements, SCA has
also decided to write down the shareholding in the French packaging
company Otor by SEK 50 M, as well as an expected capital loss on a land
holding in Taiwan of SEK 80 M.
Stockholm, 19 December 2003
SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ)
Communications and Investor Relations
For further information, please contact:
Jan Åström, President and CEO. Phone +46 70 586 07 01.
Peter Nyquist, Senior Vice President Communications and Investor
Relations. Phone +46 70 575 29 06.
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