| Mon 3 Nov 2008, 7:15 | | SAP - Sappi Limited - EU Clearance For Sappi`s Acquisition Of M-Real`s Graphic |
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SAP
SAVVI
SAP - Sappi Limited - EU Clearance For Sappi`s Acquisition Of M-Real`s Graphic
Papers business
Press Release
Sappi Limited
(Reg No 1936/008963/06)
(Incorporated in the Republic of South Africa)
JSE Share Code: SAP
ISIN Code: ZAE000006284
("Sappi")
1 November 2008
This document is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
with the United States Securities and Exchange Commission or an exemption from
registration. There will be no public offering of any securities in the United
States."
EU clearance for Sappi`s acquisition of M-real`s graphic papers business
On 29 September 2008, Sappi announced the proposed acquisition of M-real`s
Graphic Paper business for EUR750 million. The acquisition is subject to
approvals from Sappi shareholders at an Extraordinary General Meeting and the
competition authorities, as well as the implementation of Sappi`s planned rights
offering.
The EU competition authorities have yesterday, 31 October 2008, approved the
transaction. The Sappi Extraordinary General Meeting will be held on 03 November
2008 to consider the transaction.
Commenting on the positive news, Sappi chief executive Ralph Boettger said:
"We are delighted that the European Competition Commission has given its
approval for this transaction. It is a strong stamp of approval for our
acquisition and paves the way for us to drive long awaited consolidation and
transformation of the European coated fine paper sector, while creating
significant value for Sappi shareholders."
ENDS
Link to Competition Commission Announcement:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1616&format=HTML&a
ged=0&language=EN&guiLanguage=en
Forward-looking statements
Certain statements in this release that are neither reported financial results
nor other historical information, are forward-looking statements, including but
not limited to statements that are predictions of or indicate future earnings,
savings, synergies, events, trends, plans or objectives. Undue reliance should
not be placed on such statements because, by their nature, they are subject to
known and unknown risks and uncertainties and can be affected by other factors,
that could cause actual results and company plans and objectives to differ
materially from those expressed or implied in the forward-looking statements (or
from past results). Such risks, uncertainties and factors include, but are not
limited to, the risk that the Acquired Business will not be integrated
successfully or such integration may be more difficult, time-consuming or costly
than expected, expected revenue synergies and cost savings from the acquisition
may not be fully realized or realized within the expected time frame, revenues
following the acquisition may be lower than expected, any anticipated benefits
from the consolidation of the European paper business may not be achieved, the
ability to obtain governmental or regulatory approvals of the acquisition on the
proposed terms and schedule, the failure of shareholders of Sappi to approve the
acquisition or the related financings, the highly cyclical nature of the pulp
and paper industry (and the factors that contribute to such cyclicality, such as
levels of demand, production capacity, production, input costs including raw
material, energy and employee costs, and pricing), adverse changes in the
markets for the group`s products, consequences of substantial leverage,
including as a result of adverse changes in credit markets that affect our
ability to raise capital when needed, changing regulatory requirements,
unanticipated production disruptions (including as a result of planned or
unexpected power outages), economic and political conditions in international
markets, the impact of investments, acquisitions and dispositions (including
related financing), any delays, unexpected costs or other problems experienced
with integrating acquisitions and achieving expected savings and synergies and
currency fluctuations. The company undertakes no obligation to publicly update
or revise any of these forward-looking statements, whether to reflect new
information or future events or circumstances or otherwise.
Issued by:
Brunswick South Africa on behalf of Sappi Limited
Tel + 27 (0)11 502 7300
Fax + 27 (0)11 268 5747
For further information contact:
Robert Hope
Group Head Strategic Development
Sappi Limited
Tel +27 (0)11 407 8492
Robert.Hope@sappi.com
Andre F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Mobile +27(0) 83 235 2973
Tel +27 (0) 11 407 8044
Andre.Oberholzer@sappi.com
Media enquiries
Brunswick Johannesburg:
Roderick Cameron
Mobile: +27 82 887 4593
Brunswick Stockholm
Thomas Backteman
Mobile: +46 70 31 1166
Brunswick London
Simon Sporborg
Mobile: +44 79 74 98 2442
Brunswick Frankfurt
Christian Weyand
Mobile: +49 172 6171 677
Date: 03/11/2008 07:15:01 Produced by the JSE SENS Department.
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