M-real to Divest Holding in Myllykoski Paper to UPM
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M-real Corp., Espoo, Finland, part of Metsäliitto Group, has entered into an agreement to divest to UPM-Kymmene Corp. of Finland its 35% holding in Finland-based Myllykoski Paper and the capital loan M-real has granted to Myllykoski for a total of EUR 10.5 million.
Consequently, M-real will book in its second quarter 2011 result before taxes a EUR 4 million impairment. M-real will classify the Myllykoski holding according to IFRS5 as Assets Held for Sale. The transaction has a EUR 10.5 million positive cash impact.
This transaction is subject to the closing of UPM's conditional acquisition of Myllykoski Group and Rhein Papier and requires competition law clearance. The transaction is expected to be closed during the third quarter of this year.
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