Ahlstrom Corporation (Ahlstrom) and Munksjö Oyj (Munksjö) have today agreed to complete the combination of Ahlstrom's Label and Processing business in Brazil (Coated Specialties) with Munksjö.
The Boards of Ahlstrom and Munksjö are expected to formally resolve on the execution of the Coated Specialties demerger on November 29, 2013 and to notify the execution of the demerger for registration with the Finnish Trade Register on December 2, 2013.
The demerger is the final step in the process through which Ahlstrom’s Label and Processing business and Munksjö AB are combined.
As part of the Coated Specialties completion, Ahlstrom and Munksjö have agreed that Ahlstrom is responsible for the detachment process of the real estate in Jacarei, Brazil, and the transfer of the real estate to Munksjö. The parties have also agreed on a warranty arrangement covering potential financial consequences in the event that the real estate transfer to Munksjö could not be carried out.
In the demerger, the shareholders of Ahlstrom will receive as demerger consideration 0.265 new shares in Munksjö for each share owned in Ahlstrom. The number of new shares to be issued as demerger consideration will be determined based on the shareholding in Ahlstrom and taking into account all trades made, although not settled, in Ahlstrom’s shares by the end of the day when the Boards of Ahlstrom and Munksjö have resolved on the execution of the demerger, expected to occur on November 29, 2013.
An estimated amount of 12,363,370 new shares in Munksjö Oyj will be issued as demerger consideration to Ahlstrom’s shareholders in the Coated Specialties demerger. In case the number of shares received by a shareholder of Ahlstrom as demerger consideration would be a fractional number, the fractions shall be rounded down to the nearest whole number. No demerger consideration will be paid on the basis of own shares held by Ahlstrom.