M-real Corporation Stock Exchange Bulletin 31.1.2005 at 2.25 p.m.
M-REAL FINALISES SALE OF FOREST ASSETS
In accordance with the Letter of Intent signed at the end of last
year, M-real has sold its forestland to Forestia Holding Oy. The
total transaction value is EUR 172 million of which M-real´s share is
EUR 163 million. The transaction has no material effect on M-reals
The owners of Forestia Holding Oy are Metsäliitto Cooperative with a
share of 49.9%, Suomi Mutual Life Assurance Company with a share of
39.7% and the Central Union of Agricultural producers and Forest
owners with a share of 10.4 %.
EUR 24 million portion of the total sales price has been paid by M-
real´s subscribtion of a subordinated debenture issued by Forestia
Holding Oy. M-real intends to sell the debenture in the secondary
Under the terms of the transaction, Forestia Holding Oy has acquired
the forest land of Suomi Mutual Life Assurance Company for a
consideration of about EUR 21 million.
The deal is part of M-real´s action plan to divest its non-core
For additional information, contact Chief Financial Officer Juhani
Pöhö, tel. +358 10 469 5283, mobile +358 50 598 7607