Consumables

Sales Contract for Hunsfos signed

Wednesday 31. December 2008 - As part of their announced strategic re-orientation, focussing on clay-coated speciality grade papers, Cham Paper Group has signed a contract for the sale of their Norwegian company, Hunsfos Fabrikker AS.

Hunsfos Fabrikker AS manufactures approximately 50 000 tonnes per annum of uncoated speciality grade papers. The new owner is the German company Bavaria Industriekapital AG, an industrial holding concern, active in e.g. Germany, Italy, France and Switzerland. This acquisition will complement Bavaria Industriekapital AG’s existing industrial holdings. The sales contract comprises the sale of 100% of the shares for the mill and operations of the Norwegian profit centre. It has been agreed between the parties not to disclose the sales price. The contract will come into effect during the month of December 2008. Bavaria Industriekapital AG will continue and even expand the mill’s paper-making activities. All existing supply contracts and obligations will be respected by the new owners. Personnel will continue to work to existing terms of employment.

Non-operational land reserves in Hunsfos and the shares held in Saetersdalen are not included in the sale and are to be sold in a second phase.

The sale of the Hunsfos mill will lead to an anticipated non-cash bookkeeping loss of approximately CHF 19 million which will be included in the results for the current period. The loss does not take into account potential profits from the sale of land and the shareholding. Net debt of Cham Paper Group will be reduced through the sale by approximately CHF 8 million.