Norske Skog divests 29.4% holding in Catalyst Paper

Nordic Business Report, Jan 31, 2006

NORDIC BUSINESS REPORT-31 January 2006-Norske Skog divests 29.4% holding in Catalyst Paper(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

The Norwegian forest industry group Norske Skog said on Monday (30 January) that it had agreed to sell its holding of 29.4% in the Canadian paper producer Catalyst Paper.

The buyer is a syndicate led by a subsidiary of Securities Canada Inc.

The sales price of approximately NOK1,080m will result in a book loss of NOK730m, but the transaction will improve Norske Skog's gearing (debt/equity ratio).

"Even though the sale results in a significant book loss, it is the right thing to do for Norske Skog," commented Jan Oksum, CEO of Norske Skog.

"It will improve our possibilities to strengthen operations in Europe, Asia, Australasia and South America," Oksum added.

One Norwegian krone (NOK) is worth approximately 0.09 British pounds (GBP).

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