ROSE POULTRY HAS TRANSFERRED TO HKSCAN'S OWNERSHIP
HKScan Corporation STOCK EXCHANGE RELEASE November 29, 2010 at 16.00
ROSE POULTRY HAS TRANSFERRED TO HKSCAN'S OWNERSHIP HKScan Corporation (”HKScan”) announced on September 9, 2010 that it had signed an agreement to acquire all the shares in Denmark's leading poultry company, Rose Poultry A/S (“Rose Poultry”), and on November 11, 2010 that the approval by the competition authorities required to close the deal had been obtained. The transaction has today been closed and Rose Poultry has been transferred to HKScan's ownership. The final purchase price for the shares in Rose Poultry is at maximum EUR 23.9 million. The purchase price consists of a cash payment of at maximum EUR 15.9 million and at maximum 1 000 000 HKScan Series A shares. In connection with the deal, HKScan will also assume Rose Poultry's interest bearing net debt, the amount of which on November 29, 2010 is approximately EUR 43 million. The exact number of Series A shares to be issued as consideration will be calculated in accordance with the terms and conditions of the agreement concerning the acquisition of Rose Poultry and the confirmed number will be announced separately. INFORMATION ON THE CONSOLIDATED FINANCIAL STATEMENTS OF ROSE POULTRY FOR THE FINANCIAL YEAR ENDING ON SEPTEMBER 30, 2010 Net sales of the Rose Poultry Group for the financial year ending on September 30, 2010 were DKK 1 625.4 (approximately EUR 218.3 million) and EBIT was DKK 46.8 million (approximately EUR 6.3 million). -------------------------------------------------------------------------------- | | Financial year ending | Financial year ending on | | | on September 30, 2010 | September 30, 2009 | -------------------------------------------------------------------------------- | Net sales (DKK million) | 1 625.4 | 1 578.7 | -------------------------------------------------------------------------------- | EBIT (DKK million) | 46.8 | -3.5 | -------------------------------------------------------------------------------- The Group's total assets in its balance sheet at the end of the previous financial year on September 30, 2009 were DKK 648.9 million (approximately EUR 87.1 million) and interest bearing net debt was DKK 307.5 million (approximately 41.3 million). -------------------------------------------------------------------------------- | | As of September | As of September 30, 2009 | | | 30,2010 | | -------------------------------------------------------------------------------- | Total assets (DKK | 648.9 | 685.5 | | million) | | | -------------------------------------------------------------------------------- | Interest bearing net | 307.5 | 351.7 | | debt (DKK million) | | | -------------------------------------------------------------------------------- Rose Poultry will be consolidated as a subsidiary with the HKScan Group on November 29, 2010. APPOINTMENT OF NEW MANAGING DIRECTOR FOR ROSE POULTRY Olli Antniemi BSc (Econ.), 51, has been appointed managing director of Rose Poultry responsible for HKScan's operations in Denmark, effective as of November 29, 2010. He previously served as executive vice president of the HKScan Baltic Group, managing director of Scan AB, development director at HK Ruokatalo Oy and most recently in HKScan as senior vice president of strategy & development. Mr Antniemi is a member of HKScan's management team and he will report to CEO Matti Perkonoja. Per V. Møller, Rose Poultry's managing director to date, will leave the company. The largest poultry company in Denmark, Rose Poultry produces annually more than 130 million kilos of poultry meat, which is sold under the company's own Rose brand as well as under private labels as fresh, frozen or processed products in the company's main markets in Denmark, Sweden and the UK. Rose Poultry has three production facilities in Denmark and the company employs approximately 1 000 people. The acquisition will make HKScan the leading player in the poultry market in northern Europe. HKScan Corporation Matti Perkonoja CEO Further information is available from: CEO Matti Perkonoja, HKScan Corporation: Please leave any messages for him to call with Marjukka Hujanen on +358 (0)10 570 6218. HKScan is one of the leading food companies in northern Europe with home markets in Finland, Sweden, the Baltic countries and Poland. HKScan manufactures, sells and markets pork and beef, poultry products, processed meats and convenience foods under several well-known local brand names. Its customers are retail, the HoReCa sector, industry and export customers. HKScan is active in nine countries and has some 10 000 employees. It had net sales of EUR 2.1 billion in 2009. DISTRIBUTION: Nasdaq OMX, Helsinki Main media www.hkscan.com