Powerflute Oyj has entered into a conditional agreement to purchase 47.4% of the shares of Harvestia Oy ("Harvestia"), the wood supply company in which it already has an interest of 47.4%, from Vapo Oy for cash consideration of Euro 1.1 million.

The transaction remains conditional upon amongst other things receipt of clearances from relevant competition authorities and is currently expected to complete on 2 January 2017. Following completion of the transaction, Powerflute's interest in the issued share capital of Harvestia would increase from 47.4% to 94.7%, with the remaining shares held by Harvestia's senior management.

Harvestia is a wood supply company based in Finland, organising the procurement, harvesting and delivery of wood and other forest products to users in the paper, sawmill, energy and biofuel sectors. The company was established by Powerflute and Myllykoski Corporation in 2008 and has been under the joint control of Powerflute and Vapo since 2012.

Harvestia takes full responsibility for all aspects of the wood supply chain, including negotiating procurement of wood from forest owners, harvesting operations, storing and management of wood inventories and delivery logistics. Harvestia is currently the sole supplier of wood to Powerflute's semi-chemical fluting mill in Kuopio, Finland.

The contemplated transaction will have no impact on the financial results or financial position of Powerflute for the year ending 31 December 2016, but the results of Harvestia will be consolidated into those of Powerflute for the year ending 31 December 2017.

 

Source : lesprom.com

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