Sonae Capital, SGPS, SA informs about agreement regarding its affiliated Elmo, SGPS, SA

Sonae Capital, SGPS, SA informa sobre acordo relativo à sua participada Elmo, SGPS, SA


 

 

SONAE CAPITAL SGPS, SA
Lugar do Espido, Via Norte, Maia
Share Capital: 250,000,000 Euros
Maia Commercial Registry and Fiscal Number 508 276 756
Sociedade aberta

 

ANNOUNCEMENT OF MATERIAL EVENT

On 27 June 2007, Sonae Capital, SGPS, S.A. (Sonae Capital) agreed to a phased disposal of its entire shareholding in ELMO, SGPS, S.A. (ELMO), a company that controls 100% of Plysorol SAS (Plysorol) and its subsidiaries, as it was timely disclosed by Sonae, SGPS, S.A. The agreed transaction encompassed three stages. The first stage occurred on the date of the agreement and comprised the sale of 40% of the shareholding in ELMO, the second stage expected to happen on 31 March 2008 considered the sale of an additional shareholding of 40.01% and the last stage, planned for 31 December 2011, consisted on the sale of the remaining shareholding in ELMO – 19.99%.

Sonae Capital informs that it is currently negotiating the end of the abovementioned agreement upon the failure of the Purchaser to assume the responsibilities associated with bank loans of ELMO and Plysorol subsidiaries and to comply with the purchase obligation of 40.01% of the share capital of ELMO on 31 March 2008.

At the present date, Sonae Capital already changed the Board of Directors of ELMO and its affiliates, and appointed a new management team composed of highly skilled professionals, whose initial task will be to review the short and medium term strategic plan.

Sonae Capital maintains the intention of exiting the Plywood sector. For that purpose, it is currently evaluating different alternatives aimed at the future divestment from this business, but without compromising the restructuring plan, currently underway, for the Plysorol Group.

 

Maia, 5 May 2008

The Representative for Capital Market Relations