On 30 November 2006 Konecranes announced that it was studying the possibility “to release capital for the use of its rapidly growing core business.”
The Konecranes companies currently operating in the facilities will continue their normal operations in these facilities under long-term rental agreements.
The aggregate purchase price for the facilities is approximately Euros 30 million. While the main terms of the transaction are set out in the letter of intent, “the signing of the transaction is subject to finalising certain technical issues and the cities of Hyvinkää and Hämeenlinna waiving their pre-emption rights with respect to the land areas in question,” said Konecranes. The transaction is expected to be signed and closed “in a few weeks time.”
As a result, Konecranes will book a capital gain after transaction costs and taxes of approximately Euros 12.8 million in the second quarter of 2007. The full cash flow effect is estimated to materialise during this summer, “at the latest.”
Advium Corporate Finance, eQ Bank Ltd. is acting as Konecranes’ financial advisor and Roschier, Attorneys Ltd as legal advisor.
