Decisions of the Shareholders' Meeting of Demerged Kone Corporation, Determination of the Acquisition Cost of Cargotec and KONE Shares, and Publication of Cargotec's Interim Report
A Shareholders' Meeting of the demerged Kone Corporation (business ID 0110139-9) was held in Helsinki on September 7, 2005. The meeting approved the final settlement of the demerger and the financial statements and the consolidated financial statements for the period April 1, 2005-May 31, 2005 included therein. The Shareholders' Meeting discharged the members of the Board of Directors and the President from liability for the period April 1, 2005-May 31, 2005.
The proportion of net assets transferred to Cargotec and new KONE according to the final settlement approved by the Shareholders' Meeting is as follows:
Cargotec Corporation: 54.92%
KONE Corporation: 45.08%
According to the advance ruling from the Finnish Central Board of Taxation, the acquisition cost of Cargotec and new KONE shares is considered to be the part of the acquisition cost of Kone Corporation's shares that corresponds to the proportion of the net assets of Kone Corporation transferred to Cargotec and new KONE. If it is apparent that the proportion of the net assets of Cargotec and new KONE substantially differs from the proportion of the current values of Cargotec and new KONE shares, the proportion of the current values is used as the basis for dividing the acquisition cost between the shares. On June 9, 2005, an announcement was made concerning the proportion of the current values, which was:
Proportion based on first day's average weighted trading price:
Cargotec Corporation: 35.51%
KONE Corporation: 64.49%
Proportion based on first five days' average weighted trading price:
Cargotec Corporation: 35.34%
KONE Corporation: 64.66%
The final determination of the acquisition cost will be made by the tax authority of the shareholder.
As a consequence of the demerger coming into effect on June 1, 2005, Cargotec Corporation's first financial reporting period is June 1, 2005-December 31, 2005. Accordingly, the Corporation should have produced interim reports for periods ending in August and November. The Finnish Financial Supervision Authority has granted Cargotec Corporation an exception, allowing Cargotec to publish interim report for June-September 2005 so that it includes the 3-month information for the July-September period. As indicated in previously published plans, the interim report for June-September 2005 and the pro forma review for January-September 2005 will be published on Monday, October 24, 2005.