LANXESS AG — M&A Activity 2005

Dec 20, 2005

News Details

Ad-hoc | 20 December 2005 14:35

LANXESS AG: LANXESS sells Business Unit Paper to Kemira Oyj

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— LANXESS sells Business Unit Paper to Kemira Oyj Leverkusen, December 20, 2005 – The LANXESS Group is to sell its Paper Business Unit to the Finnish chemicals group Kemira Oyj, Helsinki. A purchase agreement to this effect was signed today. The transaction requires the approval of certain antitrust authorities, which means that a closing of the agreement is not to be expected until next year. The purchase price will be EUR 88 million. In the 2004 fiscal year, the Paper Business Unit achieved sales of EUR 240 million with its 375 employees at its production sites in Leverkusen and Bushy Park in the US state of South Carolina. After losses in 2003 and 2004 the Paper Business Unit has recently been able to perform better. Due to the continuing consolidation in the paper industry and the current orientation of the Paper Business Unit, LANXESS had therefore announced back in April that it was examining strategic options for the business. LANXESS AG 51369 Leverkusen Germany ISIN: DE0005470405 WKN: 547 040 Listing: Frankfurt (Prime Standard) Contacts LANXESS AG/ Investor Relations Michael Pontzen: +49 214-30 43804 Tanja Satzer: +49 214-30 43801 Oliver Stratmann: +49 214-30 49611 Dr. Gerd Zelesny: +49 214-30 71416 Legal notice This announcement is issued for information purposes only and constitutes neither an offer to sell nor an invitation to purchase securities. Dissemination of this announcement and/or the offering for sale or the sale of LANXESS shares may be legally restricted in certain jurisdictions. Persons receiving or reading this announcement should inquire as to the existence of such restrictions and should observe them. It is not intended to publish a sales prospectus or other information material relating to the offering in the Federal Republic of Germany. In particular, no sales prospectus within the meaning of the Securities Sales Prospectus Act will be published in the Federal Republic of Germany. Any offers, sales or the publication of offer documents in the Federal Republic of Germany may therefore violate the Securities Sales Prospectus Act. This announcement is not an offer for the sale of securities in the United States of America. Neither the offer for sale nor the sale of LANXESS shares has been or is being registered under the U.S. Securities Act of 1933, as amended. Therefore, the shares may not be offered for sale or sold except with prior registration or with an exemption from registration under the said Act. A public placement of the shares in the United States would only be permissible upon the issuance of a prospectus containing detailed information on LANXESS and its management together with financial statements of LANXESS and consolidated financial statements of the LANXESS Group. This announcement is directed only to persons who 1) are currently outside the United Kingdom or 2) have professional investment experience (within the meaning of Article 19(5) of the Financial Services and Market Act 2000 (Financial Promotion) Order 2001 (the “Order”) and 3) are covered by Article 49(2)(a) to (d) of the Order (high net worth corporations, unincorporated associations etc.). All such persons are for this purpose designated “relevant persons”. Persons other than relevant persons may neither take this announcement as an inducement to purchase securities nor place reliance upon it. The shares referred to in this announcement are available only to relevant persons. Invitations, agreements and offers to purchase such shares are directed only to relevant persons. If you are currently in the United Kingdom and do not fall into one of the above categories, the investment options to which this announcement refers are not available to you and you should neither take this announcement as an inducement to purchase securities nor place reliance upon it. LANXESS AG Gebäude K10 51369 Leverkusen Deutschland ISIN: DE0005470405 (MDAX) WKN: 547040 Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 20.12.2005