ASPO CHEMICALS BID FOR PEMCO OPERATIONS WITHDRAWN
ASPO Plc STOCK EXCHANGE BULLETIN June 30, 2005 at 11:30 am
Aspokem Ltd, a subsidiary of Aspo Plc, withdrew its bid to acquire operations owned by the Norwegian Pemco. In February, 2005 the parties announced a preliminary deal according to which Aspokem would have acquired Pemco's plastics and chemicals operations in Latvia, Lithuania, Ukraine and Byelorussia, in addition to taking a controlling interest in Pemco Specialities AB in Sweden.
During the due diligence phase issues emerged which brought into question whether the potential risks related to the acquisition were proportionate to its relative scope and earnings potential. The Board of Aspo Plc in its meeting of today concluded that it is not possible to draw up an agreement that is satisfactory to the acquiring party.
The withdrawal of the bid will lower the Aspo Group's sales forecast by EUR 4-8 million for the fiscal year. There will be no impact on the Group's earnings performance.
The Aspo Chemicals Division consists of Aspokem and its subsidiaries. They distribute, store and market chemicals and plastics in Finland, Estonia, Latvia, Lithuania, Russia and Ukraine. The division engages in processing activities in Finland and Estonia. Aspokem is also engaged in East-West chemical trading. The Aspokem Group's net sales in 2004 totaled EUR 65.7 million and the operating profit EUR 3.0 million.
For more information contact
Gustav Nyberg, +358 9 7595 256, +358 40 503 6420
Aspo Group focuses on logistical services for industry. Aspo serves businesses in the energy and industrial process sectors requiring strong specialist and logistical know-how. Aspo's net sales in 2004 totaled EUR 184.3 million. About 36% of this came from Aspo Chemicals, 44% from Aspo Shipping and 20% from Aspo Systems.
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