Finland-based stainless steel producer Outokumpu announced on June 1 that it has sold all of its shares in Talvivaara Mining Company Plc to Finland-based Solidium Oy, a 100 percent state-owned company. The value of the transaction for a total of 10,522,366 shares, representing 4.3 percent of all shares in Talvivaara Mining, is €60 million.
Additionally, Outokumpu has sold one fifth of its 20 percent ownership, representing four percent of all shares, in Talvivaara Sotkamo Ltd to Talvivaara Mining Company Plc. The total value of this second transaction is €60 million. Outokumpu has also granted an option to Talvivaara Mining Company Plc to purchase its remaining 16 percent stake in Talvivaara Sotkamo Ltd by the end of the first quarter of 2012.
Following these transactions, Outokumpu will record capital gains as financial income totaling €204 million in its second quarter 2011 accounts, with a total cash flow impact of €118 million. The tax impact from these transactions will be marginal and will not result in any current cash payouts.
During these transactions, JP Morgan acted as sole financial advisor to Outokumpu.