BOLIDEN AND OUTOKUMPU SIGN FINAL AGREEME
OUTOKUMPU OYJ STOCK EXCHANGE RELEASE October 25, 2003 at 12
BOLIDEN AND OUTOKUMPU SIGN FINAL AGREEMENT TO CREATE A WORLD-
LEADING MINING AND SMELTING COMPANY - NEW BOLIDEN
Boliden and Outokumpu have today entered into a final agreement
whereby Boliden will acquire Outokumpus mining and smelting
operations within zinc and copper, and Outokumpu will acquire
Bolidens Fabrication and Technology Sales units. The parties
announced the signing of a Letter of Intent on September 8,
2003.
The entities that Boliden will acquire from Outokumpu are
valued at EUR 736 million (SEK 6.6 billion) on a debt-free
basis. Bolidens consideration constitutes:
- A directed issue to Outokumpu representing 49 percent of all
shares and votes in New Boliden and valued at EUR 307 million
(SEK 2.7 billion);
- EUR 373 million (SEK 3.4 billion) in cash; and
- A subordinated debenture of EUR 56 million (SEK 0.5 billion)
issued to Outokumpu.
The consideration could, according to the agreement, be
adjusted depending on the closing financial accounts of the
acquired Outokumpu entities.
As consideration for the assets to be sold to Outokumpu,
Boliden will receive 5 million shares in Outokumpu Oyj,
corresponding to 2.8 percent of all shares and votes.
The parties are aiming to complete the transaction by the end
of 2003 and it is subject to, among other conditions, approvals
from Bolidens shareholders and relevant competition
authorities. In addition, the transaction requires that
Bolidens entire debt financing is being finally agreed and
signed well ahead of an extraordinary general meeting in
Boliden that is expected to be held in December 2003. Credit
approvals regarding Bolidens new debt financing have been
obtained subject to finalisation of documentation, after which
consent from Bolidens current lenders remains to be obtained.
The agreement also includes customary conditions, such as that
certain values are being preserved in material respects.
Further information regarding the transaction, including the
expected timetable will be announced as the process progresses.
A shareholder circular describing the transaction, including
the Outokumpu operations being acquired and pro forma
financials, will be made public and distributed to Bolidens
shareholders about two weeks ahead of the extraordinary general
meeting. As an integral part of the deal, New Boliden is
planning a guaranteed rights issue, in the order of EUR 150
million (SEK 1.4 billion) to be carried out after the
completion of the transaction.
For further information, please contact:
Boliden
Jan Öhman, CFO
Mobile: +46 70 624 19 05
e-mail: jan.ohman@boliden.se
Outokumpu
Eero Mustala, Senior Vice President - Corporate Communications
tel +358 9 421 2435
e-mail: eero.mustala@outokumpu.com
Johanna Sintonen, Manager - Investor and Media Relations
tel. +358 9 421 2438, mobile +358 40 530 0788
e-mail: Johanna.sintonen@outokumpu.com
www.outokumpu.com
OUTOKUMPU OYJ
Corporate Management
Johanna Sintonen
Manager - Investor and Media Relations
tel. + 358 9 421 2438, mobile +358 40 530 0778, fax + 358 9 421
2429
e-mail: johanna.sintonen@outokumpu.com
www.outokumpu.com