Valmet Corporation's release on February 7, 2014
Metso Corporation's Pulp, Paper and Power businesses were transferred to Valmet Corporation through a partial demerger as of December 31, 2013 and Metso shareholders received one (1) Valmet share for each of their Metso shares as a demerger consideration. As a result of the demerger, the original acquisition cost of Metso shares will be split between Metso and Valmet shares under the Finnish income tax system. Acquisition costs vary, depending on the time when the shares were originally acquired. Determining this cost is necessary for tax purposes to calculate the capital gain or loss from the sale of the shares in question.
According to the Finnish Tax Administration the weighted average share prices of the first trading day on January 2, 2014 are to be used in determining the acquisition cost of Metso Corporation's and Valmet Corporation's shares for Finnish income tax purposes. As a result, the acquisition costs are to be allocated between the two companies' shares as follows: 78.80% (Metso Corporation) and 21.20% (Valmet Corporation).
Example: If a shareholder acquired a Metso share prior to the partial demerger at a cost of EUR 25.00, the acquisition cost of the Metso share following the partial demerger will be considered as EUR 19.70 (78.80%) and that of the Valmet share as EUR 5.30 (21.20%).
The method for splitting the acquisition cost of shares described above does not apply to shareholders resident outside Finland. We recommend that shareholders liable for tax living outside Finland consult their tax advisers on how the acquisition cost of their shares will be treated locally.
Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.
Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.
The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.
Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.
Read more www.valmet.com , www.twitter.com/valmetglobal