ATRIA'S SHARE ISSUE This bulletin has been released by Atria Group plc in connection with today's announcement of an invitation to a general meeting of shareholders. Atria Group plc is seeking opportunities for the further controlled development of its domestic and international business operations and thus become an even stronger player in the Baltic rim market. For this reason, Atria's Board of Directors has decided to propose to a general meeting of shareholders that the company increase its share capital by means of a rights issue. In the new issue, present owners of Series A and KII shares would be able to subscribe for new shares such that shareholders could subscribe for one Series A share for each three Series A or KII shares at a price of EUR 5 per share. The share issue is intended to raise a maximum of EUR 26.4 million of new shareholders' equity. Atria was established at the beginning of the 1990s as a combination of three regional companies. The company honed itself into competitive shape by carrying out restructuring and new investments through which it achieved a firm foothold in the domestic market. Thanks to numerous acquisitions, Atria now has a strong domestic market position in Sweden and is the largest producer and marketer of meat products in the Nordic and Baltic territories. Atria established a significant foothold outside Finland in 1997 when the company acquired Lithells AB in Sweden. The latter company is in the meat product, fast food and local wholesale business and has seen strong post- acquisition growth. Last summer, Lithells AB acquired the business operations of Samfood AB, which operates in the Swedish market. The deal included meat product, convenience food and fast food businesses that rounded out the company's existing operations well. The functions of the companies have now been successfully integrated with each other and the Lithells Group will post a good financial result this year. The company produces nearly 25% of Sweden's meat products and its Sköllersta plant close to Örebro is the largest meat product plant in the country. Swedish business functions account for about 40% of the Atria Group's turnover. This summer, Atria acquired the shares outstanding in UAB Saltuva, a Lithuanian meat product company. Its VMK brand is well-known in the country. The company was renamed UAB Vilniaus Mesa so that its name would match its brand. The company is currently building a new plant that will be completed next spring. Substantial investment aid has been received for the plant from the EU's Sapard Fund. Atria's objective is to become the most significant meat player in the largest of the Baltic markets in the next few years. In all likelihood, this will require new acquisitions. At present, Atria is assessing the opportunities for starting up production operations in the western areas of Russia. This potential project would probably be carried out in association with a local partner. This year, Atria's result in Finland has been burdened by the strong global overproduction of pork and low price levels. However, thanks to the improvement in the results of other business functions and the positive trend in costs, the company's result for the first three quarters will be better than in the previous year. Full-year earnings are also expected to improve. It is anticipated that the "pork cycle" will turn in the first half of next year. As Atria is the largest meat processor in Finland, this is of great significance to the company. The products sold under the Atria brand only contain meat produced in Finland and thus the outcome of the Article 141 negotiations is highly significant to the future development of Atria's meat business as well. These negotiations concern the continuation of agricultural subsidies for Finnish livestock producers and farmers after 2003 based on Article 141 of Finland's EU accession treaty. Last year, the Atria Group's turnover amounted to EUR 707 million and its profit before extraordinary items and taxes to EUR 20.4 million. In recent years, Atria has distributed about half of its earnings as dividends. The Group's turnover is expected to rise to over EUR 800 million this year. Further information: Seppo Paatelainen, President, tel. +358 400 661 742 Atria Group plc is a forward-looking food processing company that is going international at a fast rate. Our brands are Atria, Chick and Duke's as well as Sibylla, Lithells and Forssan. In 2003, Atria Group's turnover is expected to rise to EUR 800 million, of which Sweden will account for about EUR 350 million. We employ 3,900 people on average. The largest production companies of the Atria Group are Atria Oy, Lithells AB, UAB Vilniaus Mesa and Liha ja Säilyke Oy. Atria Group is the biggest company in the meat business in Finland and the largest manufacturer of meat products in the Nordic countries and the Baltic area. ATRIA GROUP PLC Seppo Paatelainen President DISTRIBUTION Helsinki Exchanges Principal media
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