Boliden proposes directed issue to international investors

Boliden proposes directed issue to international investors These materials may not be published, distributed or transmitted in the United States (including its territories and dependencies, any State of the United States and the District of Columbia). These materials are not an offer for sale of securities. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. No public offering of the securities will take place in the United States. The Board of Directors of Boliden AB (publ) today passed a resolution to call an Extraordinary General Meeting to seek shareholder approval for a directed issue of approximately EUR 100 million. It is intended that the new issue of shares, a maximum of 37 million new shares, will be directed to institutional investors that are not shareholders in Boliden, and accordingly, shareholders will be asked to waive their pre-emption rights. Further, the directed issue will increase Boliden's financial strength and broaden the international shareholder base, and thus enhancing Boliden's ability for participating in, and influencing the consolidation of the mining and smelting industry. Outokumpu and Carl Bennet current owners of approximately 49 per cent and approximately 2.5 per cent respectively of Boliden supports the decision made by the Board of Directors. The Board of Directors has been informed that Outokumpu currently is considering a sale of a portion of its shares in the company according to its stated ownership strategy. If Outokumpu decides to reduce its shareholding, the Board of Directors understands that the sale of Outokumpu's shares in Boliden would be made by way of a public offering. The shares would be offered to the Swedish public and to institutional investors in Sweden and internationally. The existing shareholders of Boliden would be given priority in the allocation of shares. The public offer would be conducted simultaneously, on equal terms and in co-ordination with the directed issue. The Board of Directors believes that the proposed new issue of shares will allow Boliden's shareholders to benefit from a financially stronger company with enhanced access to international capital markets, which generate greater potential for future growth and profitability. The improved gearing would reduce interest costs by approximately SEK 75 million per year. Further, the reduction in Outokumpu's ownership in Boliden will improve the liquidity in the Boliden shares. An invitation to the extraordinary shareholders' meeting that will be held on November 30, 2004 in Stockholm, Sweden will be published as a separate stock exchange release. Alfred Berg / ABN AMRO Rothschild, JPMorgan and Nordea Corporate Finance are acting as financial advisers to Boliden in connection with the proposed directed issue. For further information, please contact: Jan Johansson, President and CEO, telephone +46 8 610 1602, + 46 70 555 02 02 Ulf Söderström, Senior VP Group Communications, telephone +46 8 610 15 57, +46 70 618 95 95 Boliden is one of the leading mining and smelting companies in the world with operations in Sweden, Finland, Norway and Ireland. Boliden's main products are copper, zinc, lead, gold and silver. Exploration and Recycling of Base Metals are also important within the company. The number of employees is approximately 4 500 and the turnover amounts to approximately EUR 2 billion annually. The Boliden share is quoted on the Stockholm Stock Exchange in Sweden as well as on the Toronto Stock Exchange in Canada. www.boliden.com Not for release or distribution in Australia, France, the Hong Kong Special Administration Region of the People's Republic of China, Japan, South Africa and the United States of America. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/11/12/20041112BIT20160/wkr0001.pdf