UPM sells all shares in Metsä Fibre to Metsäliitto
UPM exits stake in Metsä Fibre. Metsälliitto uses call option to secure additional 11% stake in Metsä Fibre before the deal with Itochu is completed.
UPM will sell its 11% remaining stake in Metsä Fibre to Metsäliitto Cooperative, the parent company of the Metsä Group. According to UPM, the transaction is scheduled for completion on 24 April. The purchase price is €150m.
On 17 April, Metsäliitto announced that it was going to make use of the call option regarding UPM's 11% ownership in Metsä Fibre, formerly Metsä-Botnia. The call option and the purchase price have been agreed back in June 2011 when UPM sold a 6.7% stake in Metsä-Botnia to Metsäliitto for €140m, the company explained.
Upon completion of the transaction, UPM will not hold any shares in Metsä Fibre. Metsäliitto's share in Metsä Fibre will temporarily increase to 68% only to decrease to 50.2% once the deal with the Japanese trading group Itochu Corporation is completed.
Itochu agreed with Metsäliitto to acquire a 24,9% stake in Metsä Fibre for a cash consideration of €472m. The transaction, which includes a 7.3% stake in Metsä Fibre held by M-real, is to be completed during the second quarter 2012.
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