Settlement of acquisition of shares in Rottneros AB

This press release may not, directly or indirectly, be distributed or published in Australia, Hong Kong, Japan, Canada, New Zealand, South Africa or the United States. The offer is not being made to (and acceptances will not be accepted from) persons in those countries or elsewhere where their participation requires further documentation, filings or other measures in addition to those required by Swedish law.

The Management Board of Arctic Paper S.A. (“Company”) hereby notifies that on December 20 and 21, 2012, a settlement has been made in respect of the transaction comprising acquisition of shares in Rottneros AB, a company organized under the laws of Sweden (”Rottneros”), as a result of the tender offer for the sale or exchange of shares in Rottneros, which the Company notified of in the current report no. 20/2012 of November 7, 2012 (“Tender Offer”).

On the basis of the resolution no. 2 of the Extraordinary General Meeting of the Company, on December 3, 2012, the Company issued 10,740,983 series B subscription warrants (the “Subscription Warrants”) authorizing to subscribe for the same number of series F shares in the Company (i.e. 10,740,983 series F shares in the Company with the nominal value of PLN 1 per share) (the “New Shares”). All Subscription Warrants were subscribed by the Company’s majority shareholder – a Swedish company, Trebruk AB (former name Arctic Paper AB) (“Trebruk”) – which subsequently exercised its rights attached to all Subscription Warrants by way of subscribing for the New Shares being issued by the Company on the basis of resolution no. 2 of the Extraordinary General Meeting of the Company of December 3, 2012. The New Shares were subscribed by Trebruk at the issue price being the PLN (Polish zloty) equivalent of SEK (Swedish crowns) 12.28632479 per New Share, calculated according to the sale exchange rate of the National Bank of Poland effective on the date of subscribing for New Shares (i.e. on December 19, 2012). All New Shares were paid with cash contribution by way of contractual set-off of Trebruk’s claim towards the Company for repayment of the debt resulting from the loan agreement concluded on December 14, 2012 by the Company (as the borrower) with Trebruk (as the lender), the subject of which were the shares in the Company allocated to the shareholders of Rottneros with respect of the Tender Offer (“Loan Agreement”) against the Company’s claim towards Trebruk for payment of the issue price of the New Shares. The information regarding adoption of a resolution on the right to issue Subscription Warrants was provided by the Company, among others, in the current report no. 30/2012 of December 4, 2012. The information regarding the Loan Agreement was provided by the Company, in the current report no. 38/2012 of December 21, 2012.

As a result of the performance of the aforementioned transaction, the share capital of the Company was increased by PLN 10,740,983.00, up to the total amount of PLN 66,144,483.00.

As a result of the Tender Offer, the Company acquired 59,090,342 shares in Rottneros, which constitutes 38.7% of the outstanding shares in Rottneros and 38.7% of the outstanding votes on the General Meeting of Rottneros. The Company waived the Tender Offer condition reserved to its benefit regarding exceeding 90% of the outstanding shares in Rottneros as a result of the Tender Offer.

The Company acquired from minor shareholders, pursuant to the terms of the Tender Offer, 1,713,294 shares in Rottneros as a result of sale thereof for the total amount of SEK 3,940,576.20, which according to the foreign exchange rates table of the National Bank of Poland no. 247/A/NBP/2012 of December 20, 2012, constitutes the equivalent of PLN 1,852,070.81. As a result of exchange of the shares in Rottneros into the Shares, 57,377,048 shares in Rottneros were acquired by the Company.

Arctic Paper S.A.

  
For additional information, please contact:

Olle Grundberg, chairman of the supervisory board of Arctic Paper, tel. +46 70 654 44 20

This information is disclosed pursuant to art. 56 section 1 item 1 of the Polish Offering Act, and was submitted for publication on 22 December 2012 at 3.00 pm CET.