M-real divests its Myllykoski Paper holding to UPM

M-real Corporation Press Release on 30 June 2011

M-real Corporation, a part of Metsäliitto Group, has entered into an agreement to divest to UPM-Kymmene Corporation its 35% holding in Myllykoski Paper and the capital loan M-real has granted to Myllykoski Paper. Consequently M-real books in its 2Q 2011 result before taxes a EUR 4 million impairment. M-real will classify the Myllykoski-holding according to IFRS5 as Assets Held for Sale and recognizes it to its fair value. The transaction has a EUR 10.5 million positive cash impact.

This transaction is subject to the closing of UPM’s acquisition of Myllykoski Group and Rhein Papier and requires competition law clearance. The transaction is expected to be closed during the 3Q 2011.

For further information, please contact:
Sari Pajari, SVP, business development tel. +358 10 465 4525