Acquisition cost of Ahlstrom's shares in transfer of its Brazilian Label and Processing business in Brazil to Munksjö through partial demerger to be divided based on 4.8% being proportion of net assets as of Dec. 2 effective date of demerger
December 17, 2013
– Ahlstrom's Label and Processing business in Brazil (Coated Specialties) was transferred to Munksjö Oyj through a partial demerger, which was registered with the Finnish Trade Register on December 2, 2013. In Finnish income taxation, part of the remaining acquisition cost of Ahlstrom shares will be transferred to the Munksjö shares received as demerger consideration in the Coated Specialties demerger. The acquisition cost is used for the calculation of capital gains and/or losses from share transactions for the basis of Finnish taxation.
Based on the average weighted trading prices, the proportion of the fair values of Munksjö shares received as demerger consideration in the Coated Specialties demerger and Ahlstrom shares do not differ significantly from the proportion of net assets of Coated Specialties and the total net assets of Ahlstrom. Thus, the acquisition cost of Ahlstrom's shares is divided based on the proportion of net assets at the effective date of the demerger. Coated Specialties' transferred net assets were 4.8% of the total net assets of Ahlstrom.
Ahlstrom's shareholders received as demerger consideration 0.265 Munksjö shares for each one share held in Ahlstrom prior to the completion of the Coated Specialties demerger. After the demerger of LP Europe on May 27, 2013, 4.8% of the remaining acquisition cost of each Ahlstrom share will be transferred to an acquisition cost per 0.265 Munksjö share.
For an Ahlstrom shareholder who has prior (May 24, 2013, at the latest) to the completion of the two demergers purchased 1,000 Ahlstrom shares at a total price of EUR 10,000 (EUR 10 per share), the acquisition cost of the shares is EUR 8,870 following the completion of LP Europe demerger on May 27, 2013. (EUR 1,130 or 11.3% of the original acquisition cost was transferred to the 250 Munksjö shares received as demerger consideration in the LP Europe demerger.)
Following the Coated Specialties demerger, 4.8%, or EUR 425.76, of the EUR 8,870 acquisition cost will be transferred to the 265 Munksjö Oyj shares received in the demerger. This equals to EUR 1.61 per received Munksjö share. Therefore the acquisition cost of 1,000 Ahlstrom shares remaining following both demergers is EUR 8,444.24 or EUR 8.44 per share.
This does not apply to Ahlstrom or Munksjö shareholders residing permanently outside of Finland. Shareholders who are tax resident outside of Finland are recommended to contact their tax advisors or local tax office regarding the split of the acquisition cost in taxation.
Ahlstrom in brief
Ahlstrom is a high performance fiber-based materials company, partnering with leading businesses around the world to help them stay ahead. Our products are used in a large variety of everyday applications, such as filters, medical gowns and drapes, diagnostics, wallcoverings, flooring and food packaging. We have a leading market position in the businesses in which we operate. In 2012, Ahlstrom's net sales from the continuing operations (excluding Label and Processing business) amounted to EUR 1 billion. Our 3,800 employees serve customers in 24 countries. Ahlstrom's share is quoted on the NASDAQ OMX Helsinki. More information available at www.ahlstrom.com.