LÄNNEN TEHTAAT SOLD ITS REMAINING HOLDING IN SUOMEN REHU TO HANKKIJA-MAATALOUS
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 1 September, 2008 at 9;15 a.m.
LÄNNEN TEHTAAT SOLD ITS REMAINING HOLDING IN SUOMEN REHU TO HANKKIJA-MAATALOUS
OY
Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy signed an agreement
today, transferring the remaining shares owned by Lännen Tehtaat in Suomen Rehu
Ltd to Hankkija-Maatalous Oy. The transaction price for the 49% shareholding was
some EUR 27 million. Lännen Tehtaat will record a non-recurring tax-free profit
of approximately EUR 6.5 million for the sale of these minority shares in its
financial performance for the third quarter.
Lännen Tehtaat plc has selected food as its core business, the aim being to
double the core business's net sales in three years. The current transaction is
a continuation of the sale of the majority of shares in Suomen Rehu, which was
carried out in June 2007, when Suomen Rehu and its subsidiaries were transferred
to the Hankkija-Maatalous Group. With today's transaction Lännen Tehtaat has
withdrawn from the feed business completely, in line with its strategy.
The profit arising on the transaction will be reported in the income statement
under discontinued operations. Because of the transaction, the profit of the
associated company Suomen Rehu will be presented differently in the consolidated
income statement. Previously shown beneath the operating profit, the share of
profit of associated company Suomen Rehu for the period 1 January - 31 August
2008 will be presented under discontinued operations. The information for the
comparative year for the period subsequent to the sale of the majority
shareholding, 1 June - 31 December 2007, will be adjusted accordingly.
Lännen Tehtaat is a food company whose continuing operations are the Frozen
Foods, Fish, Vegetable Oils and Grain Trading and Other Operations. In addition
to activities common to the Group and items unallocated to a particular segment,
the Group's Other Operations comprise a 20% holding in Sucros Oy, which is
engaged in sugar refining and trading, and a 50% holding in Ateriamestarit Oy,
which sells and markets products for the hotel, catering and restaurant
business. The Group's most important brands in Finland are Apetit, Avenakauppa
and Neito, and in Norway and Sweden Maritim, Fader Martin and Sunnmöre.
The net sales of the Group's continuing operations in 2007 amounted to about EUR
310 million, and the profit was EUR 13.4 million. The Group employed an average
of 705 people.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More information: CEO Matti Karppinen, tel. +358 (0)10 402 4001
Distribution:
OMX Nordic Exchange Helsinki
Principal media
www.lannen.fi