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ACQUISITION - SAPPI

Release Date: 05/01/1998 09:21
Code(s): SAP
Wrap Text
PRESS RELEASE: DATED 2 JANUARY 1998
SAPPI COMPLETES KNP LEYKAM ACQUISITION

SAPPI ANNOUNCED TODAY THAT IT HAD COMPLETED THE ACQUISITION OF AN EFFECTIVE
91,54% OF KNP LEYKAM ON 31 DECEMBER 1997.

IN CONSIDERATION FOR THE SHARES ACQUIRED, SAPPI HAS ISSUED 44,6 MILLION SAPPI
LIMITED ORDINARY SHARES BASED ON A PRICE OF R43,85 PER SHARE, EQUIVALENT TO NLG
804 MILLION (R1 955,7 MILLION) AND LOAN NOTES OF NLG 739 MILLION (R1 797,6
MILLION) TO KNP BT GROUP COMPANIES. THE LOAN NOTES DO NOT CARRY ANY INTEREST
AND ARE REPAYABLE AT PAR ON 31 DECEMBER 1999.

THIS WILL RESULT IN KNP BT OWNING 21,9% OF SAPPI LIMITED.

THE CONSIDERATION IS SUBJECT TO ADJUSTMENTS, WHICH ARE NOT EXPECTED TO BE
SUBSTANTIAL, FOLLOWING THE COMPLETION OF KNP LEYKAM'S AUDITED FINANCIAL
STATEMENTS AS AT 31 DECEMBER 1997.

KNP BT ARE RESTRICTED FROM SELLING ANY OF THESE SHARES FOR TWO YEARS WHEREAFTER
THEY ARE SUBJECT TO A PHASE OUT OF THE LOCK UP ARRANGEMENTS.