1st Oct 2008 15:34
1st October 2008
Powerflute OYJ
Statement regarding Potential Acquisition
Powerflute Oyj ("Powerflute"), which operates a paper mill in Kuopio, Finland where it manufactures premium quality Nordic semi-chemical fluting, confirms that it has agreed terms with the insolvency administrator of the estate of Papierfabrik Scheufelen GmbH & Co for the purchase of the assets and business of Scheufelen, a manufacturer of coated woodfree paper based in Lenningen, Germany.
The agreement is subject to due diligence and to final approval by the Board of Directors of Powerflute. Accordingly the agreement may or may not lead to Powerflute completing an acquisition. It is the current intention of the Board of Powerflute to finance the acquisition from internal resources.
A further announcement will be made as appropriate.
Ends
For additional information please contact:
|
Powerflute Dermot Smurfit, Chairman Don Coates, CEO |
C/O Billy Clegg +44 (0)20 831 3113 |
|
Öhman (Certified Adviser of Powerflute) Arja Vayrynen |
+358 (9)8866 6021 |
|
Collins Stewart (Nominated Adviser of Powerflute) Nick Ellis |
+44 (0)20 7523 8350 |
|
Financial Dynamics (IR Agency of Poweflute) Billy Clegg Georgina Bonham |
+44 (0)20 831 3113 |
|
K Capital Source Mark Kenny Jonathan Neilan |
+353 (1) 631 5500 |
About Powerflute
Powerflute is a holding company and, through its wholly-owned subsidiary Savon Sellu Oy, operates a 300,000 tonne per annum rated capacity paper mill which is also called "Savon Sellu". The Mill is located near Kuopio, Finland on the shores of Lake Kallavesi and manufactures a specialised high quality grade of semi-chem fluting called nordic semi-chem fluting which is made primarily from birch wood sourced from Finland and Russia. In accordance with its strategy, the Company may in the future also acquire and manage complementary companies or assets related to paper and packaging or other forestry derivatives.
The Group's key customers comprise corrugated board and packaging manufacturers including International Paper Company and Smurfit Kappa Group.
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