Outokumpu has participated in the IPO of Talvivaara Mining Company Ltd. by subscribing approximately 10.9 million shares, resulting in a 4.9% ownership in the company on a fully diluted basis, with a total consideration of some EUR 32 million.
Outokumpu divested the Talvivaara exploration project in 2004 and held an option to subscribe shares with a 20% discount in a possible IPO, representing up to 5% ownership in the company. The IPO of Talvivaara Mining Company Ltd. has now been completed and the listing of the shares has started today on the London Stock Exchange.
As announced earlier, Outokumpu has also exercised its option, part of the divestment agreement, to acquire a 20% stake in the Talvivaara nickel mining project company (Talvivaara Project Ltd.) owned by Talvivaara Mining Company Ltd., for a total consideration of one euro.
Talvivaara Project Ltd. will be consolidated in Outokumpu's consolidated income statement as an associated company reflecting Outokumpu's 20% holding. The fair valuation of Outokumpu's 20% stake is estimated to result in a non-recurring gain in excess of EUR 100 million, which will be booked in financial income in the second quarter 2007 income statement. The shareholding in the listed Talvivaara Mining Company Ltd. will be classified as an available-for-sale financial asset with changes in fair value recognized directly in equity.
The Talvivaara mine is estimated to start production of nickel and other metals at the end of 2008. Its target is to gradually ramp up its nickel output to some 33 000 tons annually.
Further information: Eero Mustala, SVP - Corporate Communications, tel. +358 9 421 2435,
eero.mustala@outokumpu.com
OUTOKUMPU OYJ
Corporate Management
Ingela Ulfves
Vice President - Investor Relations
tel. + 358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125
e-mail: ingela.ulfves@outokumpu.com
www.outokumpu.com