Outokumpu agrees on the final terms and conditions of the SKS transaction

OUTOKUMPU OYJ
STOCK EXCHANGE RELEASE
May 16, 2016 at 1.00 pm EET

Outokumpu announced in February 2016 the divestment of its remaining 5% share in its Chinese joint venture Shanghai Krupp Stainless. Outokumpu has now agreed with Lujiazui International Trust Co., Ltd on the final terms and conditions of the transaction.

The final transaction price for Outokumpu’s 5% rises to EUR 90 million from the earlier estimated EUR 62 million, taking into account all adjustments. Outokumpu will book additional capital gain of EUR 23 million net of taxes into its second quarter results. The gain will be excluded from the underlying profitability. In total, Outokumpu has now recorded a capital gain of EUR 412 million net of taxes for the sale of its entire 60% share in SKS.

According to the agreement, the buyer will pay the final payment in three installments. Outokumpu expects to close the transaction during the fourth quarter of 2016 after receiving the final installment. Until then, Outokumpu remains a minority shareholder with a 5 % share in SKS.

For more information:

Investors: Johanna Henttonen, tel. +358 9 421 3804, mobile +358 40 530 0778

Media: Saara Tahvanainen, tel. +358 40 589 0223

Outokumpu Group
  

Outokumpu is a global leader in stainless steel. We create advanced materials that are efficient, long lasting and recyclable – thus building a world that lasts forever. Stainless steel, invented a century ago, is an ideal material to create lasting solutions in demanding applications from cutlery to bridges, energy and medical equipment: it is 100% recyclable, corrosion-resistant, maintenance-free, durable and hygienic. Outokumpu employs 11,000 professionals in more than 30 countries, with headquarters in Espoo, Finland and shares listed in Nasdaq Helsinki. 
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