Kinnevik — M&A Activity 2008

Jan 3, 2008

Press release

Korsnäs AB to acquire Karskär Energi AB

Korsnäs AB, which previously owned 41% of the shares in Karskär Energi AB, has today signed an agreement to acquire the remaining 59% of the shares in Karskär Energi AB from E.ON Sverige AB for a consideration of SEK 200 million.

The transaction covers a combined heating and power plant that has operated in the Korsnäs industrial area in Gävle since 1971. Karskär Energi AB's annual production of electricity is 350 GWh. The acquisition enables Korsnäs to produce 38 % of its annual electricity consumption at the plants in Gävle and Frövi in-house. Peter Sandberg, CEO of Korsnäs AB, says:

"I think it is satisfying for Korsnäs to have closed this deal. It is an efficient way to gain a substantially increased degree of self-reliance when it comes to electricity at the facility in Gävle – something that is of major importance in times of very high energy prices.

Karskär's industrial plant is a high-tech facility for electricity and heat production. It is equipped to handle incineration, make use of waste heat, provide district heating and live up to tough effluent standards efficiently and with minimal environmental impact.

For more information please contact:

Peter Sandberg, CEO Korsnäs AB +46 26 15 11 11 Göran Eriksson, Mergers & Acquisitions E.ON +46 70 525 91 10

Korsnäs is one of Sweden's leading forestry companies, manufacturing some 1.1 million tonnes of paper and cartonboard annually at two facilities – Gävle and Frövi. Korsnäs develops, manufactures and sells virgin fibre-based packaging materials intended for users with exacting requirements for efficient, creative, functional packaging solutions, primarily in the consumer goods segment. The company exports approximately 90 percent of its products. Korsnäs employs 1,900 people, has annual sales of SEK 7,177 million (2006) and is a whollyowned subsidiary of Investment AB Kinnevik.