STOCK EXCHANGE RELEASE 26 Apr 1999
JAAKKO PÖYRY GROUP HAS RAISED ITS SHAREHOLDING IN ELECTROWATT ENGINEERING LTD TO 100 PER CENT
ACQUISITION IMPLEMENTED THROUGH AN INCREASE IN THE SHARE CAPITAL AND A TARGETED SHARE ISSUE
Jaakko Pöyry Group Oyj reached an agreement on April 23, 1999 with the other shareholders in Electrowatt Engineering Ltd., Ernst Göhner Stiftung and Nordostschweizerische Kraftwerke AG, regarding the acquisition of their shareholdings in Electrowatt Engineering Ltd. Accordingly, the Jaakko Pöyry Group's shareholding in Electrowatt Engineering Ltd will increase to 100 per cent. The sales price for the 30 per cent shareholding is FIM 32,914,160 (EUR 5.5 million).
The Jaakko Pöyry Group exercised its option to acquire a controlling interest in Electrowatt Engineering Ltd on January 11, 1999. Following this transaction, the Jaakko Pöyry Group's shareholding in Electrowatt Engineering Ltd increased from 49 per cent to 70 per cent.
Jaakko Pöyry Group Oyj's Board of Directors on April 23, 1999 decided to use the authorisation given by the Annual General Meeting of shareholders on March 18, 1999 to raise the company's share capital. As a result, the company's share capital was raised by FIM 2,837,430, or from FIM 68,500,00 to FIM 71,337,430 by offering for subscription to Ernst Göhner Stiftung 378,324 shares and to Nordostschweizerische Kraftwerke AG 189,162 shares through a targeted share issue, or a total of 567,486 shares with a nominal price of FIM 5 per share. The price to be paid per share is FIM 58, totalling FIM 32,914,188. The capital gain of FIM 53 per share, or a total of FIM 30,076,758, will be booked in the reserves.
The transaction is based on the Jaakko Pöyry Group's strategy of operating globally as an international leading consulting and engineering firm in three major areas of expertise: forest industry, energy, and infrastructure and environment. The acquisition of Electrowatt Engineering Ltd strengthens the Jaakko Pöyry Group's position in the growing markets for energy, infrastructure and environmental know-how.
Electrowatt Engineering is a world leading engineering and project management company in the energy sector, specialising in hydroelectric and thermal power, nuclear safety systems and waste incineration. In addition, Electrowatt Engineering is a leading European specialist in transportation systems and tunnels. The Electrowatt Engineering Group's net sales for 1998 were about EUR 119 million. The company with its subsidiaries employs at present about 350 people in Switzerland and 800 in 25 other countries.
The Jaakko Pöyry Group and Electrowatt Engineering Ltd, including associated companies, together constitute one of the world's biggest independent consulting and engineering firms. With annual net sales of about EUR 380 million, the Group employs more than 4000 people. The operations of the Jaakko Pöyry Group's and Electrowatt Engineering Ltd's Energy and Infrastructure and Environment business groups were combined at the beginning of 1999.
JAAKKO PÖYRY GROUP OYJ
For more information, please contact:
Mr. Teuvo Salminen, Executive Vice President, Jaakko Pöyry Group Oyj, tel. +358-9-8947 2872