Konecranes signs letter of intent for sale of a considerable part of its Finnish real estate

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On November 30, 2006 Konecranes announced that it was studying the possibility to release capital for the use of its rapidly growing core business by selling six properties located in Hyvinkää and Hämeenlinna, Finland, comprising buildings of approximately 74,000 square meters and a land area of roughly 240,000 square meters, which are currently mainly in production, warehousing and office use.

Konecranes has on March 26, 2007 signed a letter of intent regarding the sale of these facilities to the Swedish-based real estate company AB Sagax (publ.). The Konecranes companies currently operating in the facilities will continue their normal operations in these facilities under long-term rental agreements.

The aggregate purchase price for the facilities is approximately EUR 30 million. While the main terms of the transaction are set out in the letter of intent, the signing of the transaction is subject to finalizing certain technical issues and the cities of Hyvinkää and Hämeenlinna waiving their pre-emption rights with respect to the land areas in question. The transaction is expected to be signed and closed in a few weeks time.

As a result of the transaction, Konecranes will book a capital gain after transaction costs and taxes of approx. EUR 12.8 million in the second quarter of 2007. The full cash flow effect is estimated to materialize during this summer, at the latest.

Advium Corporate Finance, eQ Bank Ltd. is acting as Konecranes' financial advisor and Roschier, Attorneys Ltd as legal advisor.

 

For further information please contact:
Konecranes Plc
Teuvo Rintamäki, Chief Financial Officer, tel. +358 20 427 2040

Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions and services for lifting equipment of every make. In 2006, Group sales totalled EUR 1,483 million. The Group has 7,500 employees, at more than 370 locations in 41 countries. Konecranes is listed on the OMX Helsinki Stock Exchange (KCR1V).


AB Sagax is a real estate company investing mainly in industrial and warehouse properties. Sagax is domiciled in Sweden. Sagax property portfolio comprises 88 properties with a total gross area of 684 000 square meters. AB Sagax (publ) is traded on First North (symbol SAGA), which is part of the OMX Nordic Exchange.



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