(15 July 2022) Elopak and Packaging Management and Investing LLC, a company beneficially owned by management of JSC Elopak, have reached an agreement (the "SPA") for the sale and purchase of all of Elopak's shares in JSC Elopak.
Reference is made to stock notices on 3 March 2022 and 4 March 2022 regarding the temporary suspension of Elopak's business activities in Russia. In consequence of the outlook with respect to continued business operations in Russia, Elopak has reached an agreement with local management representatives in Russia for the sale of all of Elopak's shares in JSC Elopak, representing a full divestment by Elopak from its existing Russian operations.
The SPA includes the materials terms of the transaction, including payment of the purchase price, which will be payable in five annual instalments, the first of which becomes due shortly after completion of the transaction. The completion of the sale is subject to local governmental approvals. We do not expect further material financial gains or losses recognised in Q2-22 as a result of concluding the transaction. However, the investment is reporting in RUB and the settlement is in RUB, hence there will be an inherent currency risk until the transaction is closed.
In addition, in light of the unpredictable outlook in sanctions laws towards Russia, Elopak has a right to withdraw from the transaction until closing in the event that it becomes illegal under Norwegian law. It is expected that completion of the sale will take place in Q3 or Q4 2022.
The information is such that Elopak ASA is required to disclose in accordance with the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The information was submitted for publication, through the agency of Thomas Askeland, at 08:55 CEST on 15 July 2022.
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