Sale of Ovako finalized
In July 2006, Rautaruukki Corporation, AB SKF and Wärtsilä Corporation signed an agreement to sell the operating companies owned by Oy Ovako Ab to a company owned by Hombergh Holdings BV shareholders, WP de Pundert Ventures BV and Pampus Industrie Beteiligungen GmbH & Co. KG. The sale has now been closed.
The total price for the shares is approximately EUR 660 million, comprising a cash payment at closing of approximately EUR 535 million, a deferred cash payment of EUR 15 million to be paid in July 2008 and an interest-bearing vendor note of EUR 110 million to be paid within 3-6 years of closing.
SKF owned 26,5% of Ovako and the tax-free capital gain on the transaction and the share of Oy Ovako Ab’s result generated in 4th quarter 2006 will be reported in SKF's income statement as result of associated companies, and is estimated to be approximately 450 MSEK.
Göteborg, November 20, 2006
For further information, please contact:
PRESS: Lars G Malmer, SKF Group Communication, tel. +46 (0)31 337 1541, e-mail: Lars.G.Malmer@skf.com
IR: Marita Björk, SKF Investor Relations, tel: 031 3371994, e-post: email@example.com