RE: short/long termUPM-KYMMENE CORP ("UPM-DNQ;UPMKF-L") REPAP ENTERPRISES INC
("RPP-T") - UPM-Kymmene To Acquire Repap
UPM-Kymmene Corporation (Helsinki Stock Exchange: UPM1V; NYSE: UPM) and
Repap Enterprises Inc. announced that they have signed an acquisition agreement under
which UPM-Kymmene will acquire Repap in a transaction to be effected by way of an
amalgamation. Pursuant to the agreement, Repap''s shareholders will receive CAD 0.20
per common share, which represents a premium of approximately 100% over the recent
trading price of Repap common shares on The Toronto Stock Exchange. The transaction
values Repap''s equity at approximately CAD 160 million (EUR 120 million), implying a
total enterprise value for Repap of approximately CAD 1.35 billion (EUR 1.01 billion).
The transaction will result in a goodwill value of approximately CAD 400 million (EUR
300 million). With respect to Iceberg''s outstanding debt securities, UPM-Kymmene is
considering its options, which may include purchases of such securities in negotiated
transactions, a redemption of all or a portion of such securities after consummation of the
transaction and/or leaving such securities outstanding.