Consumables

The compensation for the sale of Norske Skog Korea has been received

Thursday 11. September 2008 - On 26 August 2008, Norske Skog announced that all outstanding matters concerning the completion of the sale of Norske Skog Korea to Morgan Stanley Private Equity Asia and Shinhan Private Equity had been clarified.

Norske Skog confirms that the company today received the full settlement amount for the transaction. The sale of the property is part of the effort to reduce Norske Skog’s debts.
 
After the sale, Norske Skog’s net interest-bearing debt has been reduced to pro forma NOK 12 billion, compared with NOK 15.7 billion as of 30 June 2008. The gearing has been reduced to pro forma 0.83, from 1.07 as of 30 June.
 
Norske Skog’s cash balance was NOK 2 billion as of 30 June 2008. After the transaction, the pro forma cash balance has increased to NOK 5.4 billion. Over the last couple of months, Norske Skog has announced the sale of several non-operational properties in Norway, as well as the shut-down mill Norske Skog Steti in the Czech Republic. These are transactions which will be settled in the third and fourth quarters of 2008 and the first quarter of 2009. If the compensation from these transactions is added to the pro forma cash balance, it will be slightly less than NOK 6 billion in total. The pro forma net debt will correspondingly be NOK 11.5 billion.
 
Cash flow and currency effects from operations in the third quarter will be announced at the regular quarterly presentation in November.
 
Norske Skog will continue the work to reduce the company’s net debt through the cash flow from operations and transactions.