SAPPI LTD (SAP) 6-K

(d)
all of the know-how, brands, order books, customer lists, intellectual property and goodwill in M-real’s coated graphic paper business (including
the know-how, brands, order books, customer lists, intellectual property and goodwill in relation to M-real mills at Husum (Sweden), Äänekoski
(Finland), Hallein (Austria) and Gohrsmühle (Germany)) but excluding all of the know-how, brands, order books, customer lists, intellectual
property and goodwill in M-real’s coated graphic paper business in South Africa.
As part of the Transaction, Sappi will enter into:
(a)
(b)
long term supply agreements under which Metsäliitto will supply wood, energy and pulp; and
transitional marketing agreements whereby M-real will produce products at certain graphic paper machines at the Husum Mill (Sweden) and the
Äänekoski Mill (Finland) and Sappi will market and distribute those products.
As outlined above, elements of the assets and businesses being acquired that relate to M-real’s business and operations in South Africa will be excluded
(the “South African Component”). Sappi has an option to acquire the South African Component, and M-real has an option to require Sappi to acquire the
South African Component, upon receipt of any necessary regulatory approvals and clearances, including the approval of the South African competition
authorities.
A further description of the Acquired Business and certain marketing agreements being entered into as a result of the Transaction follows:
1) Mills being acquired
(i)
Kirkniemi
The mill at Kirkniemi has an annual production capacity of approximately 740,000 tonnes. Kirkniemi is located 70km west of Helsinki, in
southern Finland. The products of the Kirkniemi mill are:
• Galerie Lite – coated ultra light-weight paper with high bulk and opacity;
• Galerie Brite – coated light-weight paper with high bulk, soft gloss and improved brightness; and
• Galerie Fine – coated magazine paper with high brightness, smoothness and improved opacity.
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