Displaying items by tag: UPMKymmene
UPM-Kymmene Corporation has launched arbitration proceedings against Metsä Board Corporation
Metsä Board Corporation, a part of Metsä Group, divested on 3 May 2012 a 7.3 percentage point shareholding in Metsä Fibre Oy to Japan-based Itochu Corporation for EUR 138 million. At the same time Metsäliitto Cooperative, divested 17.6 percentage points of their holding in Metsä Fibre to Itochu. Metsä Board’s parent entity Metsäliitto had exercised on 24 April 2012 its call option pursuant to an amendment to the shareholders’ agreement to purchase the UPM-Kymmene Corporation’s 11 percentage holding in Metsä Fibre.
UPM has today initiated arbitration proceedings in which it claims jointly from Metsäliitto and Metsä Board primarily EUR 58.5 million in damages and secondarily to return an EUR 58.5 million claimed unjust enrichment. The claims are based on an alleged breach of the tag-along clause specified in Metsä Fibre’s shareholder agreement signed in 2009.
Metsä Board considers UPM’s claim to be unfounded in its entirety and will not book provisions related to this claim. The claim does not have an effect on the Itochu transaction or on Metsä Board’s cooperation with Itochu and it is not based on agreements made with Itochu.
The dispute initiated by UPM will be processed in a court of arbitration and the outcome will be announced later on.
METSÄ BOARD CORPORATION