After the EU Commission approved the combination of Ahlstrom’s European Label and Processing business and Munksjö AB last Friday, the company is set to take the next steps in the divestment project.
The demerger of Ahlstrom’s Label and Processing business in Europe (LP Europe) has today been registered with the Finnish Trade Register, the company announced. A total of 11,597,326 new shares in Munksjö Oyj were issued as demerger consideration to Ahlstrom's shareholders in the LP Europe demerger. Ahlstrom said that right after the closing, Ahlstrom will buy back its operations in Osnabrück, Germany. The wallpaper and hybrid wallcovering business will remain with Ahlstrom, while the abrasive backings and pre-impregnated decor paper businesses will be divested to a third party in accordance with the commitments made to the EU Commission. The second phase of the transaction, the demerger of Coated Specialties in Brazil, is expected to the completed during the second half of this year.
Last year Ahlstrom's Label and Processing business in Europe had net sales of €562.5m. Four plants and altogether about 1,000 employees will be transferred to Munksjö.
Ahlstrom said that its shareholders will own shares in two listed companies, Ahlstrom and Munksjö, both global leaders in their fields. The company is to become a major shareholder in Munksjö, holding a total of 23.4% of the shares following the completion of the European part of the transaction. After the completion of the Brazilian demerger, its shareholding in Munksjö would be 17.8%, the company said.