News 312 views last update:6 Aug 2012

Lännen Tehtaat sells Suomen Rehu

Finnish competition authorities have approved the sale of 51% of shares of Suomen Rehu by Lännen Tehtaat, but denied the sale of Avena Nordic Grain to SOK subsidiary Hankkija-Maatalous.

On January 19, 2007 Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy signed a share-transaction agreement whereby 51% of the shares in Suomen Rehu Ltd and Avena Nordic Grain Oy would be transferred to the ownership of cooperative Hankkija-Maatalous Oy.

At the beginning of March the competition authorities decided that the further investigation of the merger notification lodged by Hankkija-Maatalous was necessary.

Too strong
The merger of the grain trading operations of Avena Nordic Grain with the grain trading division of Hankkija-Maatalous is thought to create a too strong market position for Hankkija-Maatalous in Finland.

The parties to the sale have decided that Avena will not be included in the sale. The competition authorities are continuing their investigation.

The shift of the majority shareholding of Suomen Rehu Ltd (320 employees) will go ahead. The enterprise value of the business operations of Suomen Rehu has been agreed at € 71 million.

The price for the 51% of the shareholding in the company to be sold is about € 24 million. The purchaser will also assume responsibility for the net debts of Suomen Rehu at the moment when the closing takes place.

The sale of the majority shareholding in Suomen Rehu is expected to generate a profit of about € 6 million.

Hankkija-Maatalous has a purchasing option to buy the remaining 49% shares of Suomen Rehu, which can be effectuated at least 15 months after closing of the current deal.

Editor AllAboutFeed

Or register to be able to comment.