Metso to participate in consortium that will invest in Northland Resources
Metso Corporation's stock exchange release on May 30, 2013 at 8:45 a.m. local time
Northland Resources has yesterday announced a possibility of a long-term financial solution in the form of a USD 355 million bond issue.
A consortium comprising Norrskenet, Metso, Peab and Folksam will invest a total of USD 100 million, or USD 25 million each, in the bonds, and will obtain the right to appoint four out of seven members on Northland's Board of Directors. The aim is to assume the necessary influence in the company, insure the completion of the project as currently envisioned and to provide expertise with the mission to restore confidence in the company.
As part of the process, Northland will get a new Board. The consortium has proposed Mr. Olav Fjell as Chairman of the Board and will propose three other members once the bond offering is fully subscribed and approved.
Metso has supplied mining equipment and services to Northland's Kaunisvaara project in northern Sweden. The refinancing also includes a long-term payment schedule for Metso's outstanding receivables at Northland.
The consortium's investment is subject to the bond offer being fully subscribed when the subscription period ends on today, May 30, 2013, at 22:00 CET and the consortium being granted the right to appoint four of seven members on Northland's Board.
Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries contribute to sustainability and deliver profitability to customers worldwide. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd.
Further information, please contact:
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel +358 20 484 3253
VP, Investor Relations
NASDAQ OMX Helsinki Ltd