Arctic Paper Makes Public Offer to Buy Market Pulp Producer Rottneros

Nov. 8, 2012 - Arctic Paper S.A. has announced a public offer to acquire all shares in Rottneros AB, a non-integrated and customized supplier of high quality paper pulp listed on NASDAQ OMX Stockholm.

Rottneros’ Board of Directors has unanimously recommended the offer.

According to a statement by Rottneros, Arctic Paper's offer of SEK 2.30 per share values Rottneros at approximately SEK 351 million (about USD 51 million), based on 152,571,925 outstanding shares in Rottneros.

Arctic Paper said the combined group will be a leading European producer of bulky book paper, high-quality graphic fine paper and pulp for paper producers. In addition, it will remain a significant supplier of market pulp.

The combined group will have a good balance between pulp production and consumption in the fine paper mills and thus be less volatile than the two companies as stand-alone entities. It will have four fine paper mills and two pulp mills, Arctic Paper noted.

Arctic Paper said that it does not anticipate any material effects of the implementation of the offer for Rottneros’ business or employees, including employment conditions and employment levels at locations where Rottneros currently conducts business.

Until the completion of the offer, Rottneros and Arctic Paper will operate as two independent listed companies with their current boards and management teams, respectively.

Arctic Paper S.A. has its registered office in Poznan, Poland, where most of the group management and the board of directors are also based. Sales and marketing is based in Gothenburg and Hamburg.

Arctic Paper S.A. is the parent company of the four fine paper mills Arctic Paper Munkedals AB and Arctic Paper Grycksbo in Sweden, Arctic Paper Mochenwangen GmbH in Germany and Arctic Paper Kostrzyn S.A. in Poland. During 2011 the group produced a total of approx. 765 000 tonnes of graphic fine paper.

Rottneros, with its headquarters in Stockholm, Sweden, has an annual production capacity of just under 400,000 tonnes of pulp, produced at two mills in Sweden. In 2011 the company employed around 300 people, the majority in Sweden and had sales amounting to approximately SEK 1.5 billion.

SOURCE: Arctic Paper S.A. and Rottneros