LÄNNEN TEHTAAT: NORDIC SUGAR’S COMPENSATION CLAIM UNFOUNDED

In its announcement issued on 3 February 2012, Nordic Sugar stated that it has presented a compensation claim of EUR 4.5 million to Lännen Tehtaat for breach of shareholder agreement. No compensation claim has been presented to Lännen Tehtaat.

Lännen Tehtaat has requested the Arbitration Institute of the Central Chamber of Commerce of Finland to appoint a chairman to the arbitration court in a dispute concerning Nordic Sugar’s breaches of shareholder agreement. In Nordic Sugar’s response to Lännen Tehtaat’s application, which was submitted to the Central Chamber of Commerce’s Arbitration Tribunal by Nordic Sugar, Nordic Sugar expressed the view that Lännen Tehtaat committed a breach of shareholder agreement in connection with the dismissal of Sucros Ltd’s managing director, and requests the arbitration court to confirm the breach of shareholder agreement and order Lännen Tehtaat to pay a contractual penalty of EUR 4.5 million.     

“Lännen Tehtaat’s view is that the shareholder agreement was complied with in the dismissal of Sucros Ltd’s managing director, and so the compensation claim is unfounded. Under the shareholder agreement, both shareholders are entitled to demand the managing director’s dismissal if confidence in the managing director has been lost and cannot be restored,” says Chief Executive Officer Matti Karppinen. 

On 14 October 2011, Lännen Tehtaat published an announcement in which it reported that a dispute concerning breaches of shareholder agreement is being taken to arbitration court. According to Lännen Tehtaat, Nordic Sugar is guilty of three different breaches, and on the basis of these Lännen Tehtaat is demanding a contractual penalty totalling of EUR 27 million. The arbitration will begin after appointment of a chairman. In addition, Lännen Tehtaat plc has submitted to the Regional State Administrative Agency for Southern Finland an application requesting a special audit of the accounts of Sucros Ltd in connection with e.g. business transactions between Sucros and Nordic Sugar Groups companies.

LÄNNEN TEHTAAT PLC

Matti Karppinen
CEO

Further information:

Matti Karppinen, tel. +358 (0)10 402 00