Rautaruukki closes Ovako sale

Finnish steelmaker Rautaruukki Corporation has announced the closure of its agreement with AB SKF and Wärtsilä Corporation – the signing of which was reported by SteelOrbis in July 2006 - to sell the operating companies owned by Oy Ovako Ab to a company owned by Hombergh Holdings BV shareholders, WP de Pundert Ventures BV and Pampus Industrie Beteiligungen GmbH & Co. KG. The total price of the shares sold is about Euro 660 million, comprising a cash payment at sale closure of approximately Euro 535 million, a deferred cash payment of Euro 15 million to be paid in July 2008, and also an interest-bearing vendor note of Euro 110 million to be paid within three to six years of closure. The Ovako transaction, following the earlier closed sale of the Nordic reinforcing steel business, marks the completion of Rautaruukki's withdrawal from the manufacture of long steel products. Rautaruukki, SKF and Wärtsilä had respectively owned 47 percent, 26.5 percent and 26.5 percent shares in Ovako.