English

KONECRANES SIGNS LETTER OF INTENT FOR SALE OF A CONSIDERABLE PART OF ITS FINNISH REAL ESTATE

Report this content 
KONECRANES PLC  STOCK EXCHANGE RELEASE  27 March, 2007  8.30 a.m.        1      


KONECRANES SIGNS LETTER OF INTENT FOR SALE OF A CONSIDERABLE PART OF ITS FINNISH
REAL ESTATE                                                                     

On November 30, 2006 Konecranes announced that it was studying the possibility  
to release capital for the use of its rapidly growing core business by selling  
six properties located in Hyvinkää and Hämeenlinna, Finland, comprising         
buildings of approximately 74,000 square meters and a land area of roughly      
240,000 square meters, which are currently mainly in production, warehousing and
office use.                                                                     

Konecranes has on March 26, 2007 signed a letter of intent regarding the sale of
these facilities to the Swedish-based real estate company AB Sagax (publ.). The 
Konecranes companies currently operating in the facilities will continue their  
normal operations in these facilities under long-term rental agreements.        

The aggregate purchase price for the facilities is approximately EUR 30 million.
While the main terms of the transaction are set out in the letter of intent, the
signing of the transaction is subject to finalizing certain technical issues and
the cities of Hyvinkää and Hämeenlinna waiving their pre-emption rights with    
respect to the land areas in question. The transaction is expected to be signed 
and closed in a few weeks time.                                                 

As a result of the transaction, Konecranes will book a capital gain after       
transaction costs and taxes of approx. EUR 12.8 million in the second quarter of
2007. The full cash flow effect is estimated to materialize during the summer,  
at the latest.                                                                  

Advium Corporate Finance, eQ Bank Ltd. is acting as Konecranes' financial       
advisor and Roschier, Attorneys Ltd as legal advisor.                           

Konecranes is a world-leading group of Lifting Businesses™, serving a broad     
range of customers, including manufacturing and process industries, shipyards,  
ports and terminals. Konecranes provides productivity-enhancing lifting         
solutions and services for lifting equipment of every make. In 2006, Group sales
totalled EUR 1,483 million. The Group has 7,500 employees, at more than 370     
locations in 41 countries. Konecranes is listed on the OMX Helsinki Stock       
Exchange (KCR1V).                                                               

AB Sagax is a real estate company investing mainly in industrial and warehouse  
properties. Sagax is domiciled in Sweden. Sagax property portfolio comprises 88 
properties with a total gross area of 684 000 square meters. AB Sagax (publ) is 
traded on First North (symbol SAGA), which is part of the OMX Nordic Exchange.  

KONECRANES PLC                                                                  


Paul Lönnfors                                                                   
IR Manager                                                                      




FURTHER INFORMATION                                                             
Konecranes Plc                                                                  
Teuvo Rintamäki, Chief Financial Officer, tel. +358 20 427 2040                 


DISTRIBUTION                                                                    
OMX Helsinki Stock Exchange                                                     
Media

Subscribe