[ET Net News Agency, 23 April 2018] Hengan International (01044) said it has entered
into an initial investment agreement with Finnpulp Oy and its existing shareholders to
subscribe for 5.83 million new shares of Finnpulp at EUR2 per share at a total of about
EUR11.67 million.
The subscription shares represent around 36.46% of the enlarged total issued share
capital of Finnpulp upon completion.
Two of the existing shareholders of Finnpulp will also simultaneously subscribe for 1.67
million new shares of Finnpulp at the same subscription price.
Finnpulp is currently engaged in planning and aiming to build a large-scale bioproduct
mill in Kuopio, Finland. The target of the planned mill is to produce around 1.2 million
tonnes of northern bleached softwood sulphate kraft pulp (NBSKP) per year for global
markets and other bioproducts. The total estimated costs for the pulp mill project is
expected to be about EUR1.4 billion.
Provided that the pulp mill project is completed and the pulp mill goes into operation,
Hengan shall have the right to purchase from Finnpulp a percentage of all NBSKP produced
by Finnpulp that corresponds to the Hengan's shareholding in Finnpulp at the time of
purchase, and Finnpulp undertakes to supply and sell to the Hengan such amount, for 20
years after the pulp mill project has been completed. (HL)