In late September 2008, M-real announced the sale of its Graphic Papers business to the South African Sappi Limited for EUR 750 million.
The transaction includes the Kangas, Kirkniemi, Biberist and Stockstadt mills with a total coated paper production capacity of about 1.9 million tons per annum as well as several long-term commercial agreements.
The competition authorities approved the transaction in October 2008. In early November 2008 Sappi’s extraordinary shareholders’ meeting accepted the deal and Sappi’s rights offering was initiated. Sappi’s rights offering was well received by the market and investors and it was successfully finalized on 12 December 2008.
The closing conditions have been satisfied and the transaction is expected to be closed at year end 2008.