Wärtsilä: Closure of Ovako sale

Wärtsilä Corporation, Stock exchange release 20 November 2006 at 09:00 UTC+2

In July 2006, Wärtsilä Corporation, Rautaruukki Corporation and AB SKF and signed an agreement to sell the operating companies owned by Oy Ovako Ab to a company owned by Hombergh Holdings BV shareholders, WP de Pundert Ventures BV and Pampus Industrie Beteiligungen GmbH & Co. KG. The sale has now been closed.

The total price for the shares is about EUR 660 million, comprising a cash payment at closing of approximately EUR 535 million, a deferred cash payment of EUR 15 million to be paid in July 2008 and an interest-bearing vendor note of EUR 110 million to be paid within 3-6 years of closing.

Wärtsilä owned 26.5 per cent of Ovako. For Wärtsilä the tax-free capital gain on the transaction is approximately EUR 49 million. The gain and the share of Oy Ovako Ab’s result generated after 30 June 2006 will furthermore be included in Wärtsilä´s income statement as share of profit of associates.

The divestment of Ovako concludes Wärtsilä’s plan to focus on the company’s core businesses.

For further information, please call:
Raimo Lind, Executive Vice President & CFO, tel. +358 10 7095 640.