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  • LÄNNEN TEHTAAT PLC TAKES THE BREACH OF SHAREHOLDER AGREEMENT DISPUTE BETWEEN LÄNNEN TEHTAAT AND NORDIC SUGAR TO ARBITRATION
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LÄNNEN TEHTAAT PLC TAKES THE BREACH OF SHAREHOLDER AGREEMENT DISPUTE BETWEEN LÄNNEN TEHTAAT AND NORDIC SUGAR TO ARBITRATION

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Lännen Tehtaat plc and Nordic Sugar Oy are both owners of Sucros Ltd, a company engaged in the processing and marketing of sugar in Finland. Lännen Tehtaat plc has a 20% holding in Sucros Ltd and Nordic Sugar Oy is the majority owner with 80% of the shares.

Sucros Ltd was established in 1990 when the sugar industries of Lännen Tehtaat plc and the then Cultor Oy were combined under joint ownership. The shareholder agreement that was drawn up when Sucros Ltd was established includes special minority owner protection for Lännen Tehtaat plc as the minority owner.

Lännen Tehtaat and Nordic Sugar are now in a situation in the operations of Sucros Ltd in which Lännen Tehtaat is of the opinion that its minority rights have repeatedly been violated by the decision-making and actions of the majority owner. In spite of several complaints, the majority owner has not rectified the actions that are in breach of the shareholder agreement, and therefore Lännen Tehtaat has decided to take the issue to arbitration to be resolved. In its rejoinder to Lännen Tehtaat, Nordic Sugar has denied the breaches of shareholder agreement.

According to Lännen Tehtaat, Nordic Sugar has committed 3 breaches against the agreement. According to the terms and conditions of the shareholder agreement, one proven breach will incur a contractual penalty totalling EUR 8.9 million per breach. Therefore the penalty could total a maximum of close to EUR 27 million.


LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO

Further information: Matti Karppinen, CEO, tel.  +358 10 402 00

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NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi


Lännen Tehtaat Group’s business sectors are the Frozen Foods business, the Seafood business, the Grains and Oilseeds business and Other Operations.
The Group’s net sales in 2010 totalled EUR 308.7 million, operating profit was EUR 8.3 million and profit for the financial year was EUR 6.5 million. The Group employed an average of 621 people.

Sucros Ltd is engaged in producing and marketing sugar for industry and the retail trade. At its sugar mill in Säkylä, Sucros Ltd processes sugar from Finnish sugar beet amounting to just under half of the annual sugar consumption in Finland. Sucros Ltd also refines raw sugar at its sugar refinery in Kirkkonummi. The Sucros Group’s net sales are about EUR 155 million and it employs approximately 260 people.

 

 

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