Rautaruukki, SKF and Wärtsilä to sell Ovako

Finnish steelmaker Rautaruukki Corporation, AB SKF and Wärtsilä Corporation signed an agreement to sell the operating companies owned by Oy Ovako Ab to a company owned by the shareholders of Hombergh Holdings BV, WP de Pundert Ventures BV and Pampus Industrie Beteiligungen GmbH & Co. KG. The transaction, which is subject to relevant regulatory approvals, is expected to be completed in September 2006. The total price for the shares is approximately Euro 660 million. In addition, the buyer will assume estimated net debt of Euro 40 million at closing, making Ovako's value approximately EUR 700 million. Rautaruukki, SKF and Wärtsilä own 47 percent, 26.5 percent and 26.5 percent of Ovako, respectively.