Sale of shares postponed until current restructuring of FLS Industries A/S is completed

 | Source: FLSmidth A/S FLSmidth A/S

Aktieselskabet POTAGUA has today issued a Stock Exchange Message (No. 12-2003) concerning a sale of shares in Aktieselskabet POTAGUA and FLS Industries A/S with the following wording:

Sale of shares postponed until current restructuring of FLS Industries A/S is completed

At its meeting on Friday 3 October, the Board of Directors of Aktieselskabet POTAGUA has decided to proceed in cooperation with FLS Industries A/S with the restructuring of the latter before entering into any negotiations with potential buyers of shares in both Aktieselskabet POTAGUA and FLS Industries A/S.

This decision means that the FLS Industries strategy plan, published on 29 August 2002, will be implemented as foreseen. This will entail divestment or closure of non-core activities, reduction of the interest-bearing net debt and a new Group Management replacing the present interim managerial structure. The restructuring is expected to be finalised at the end of 2003.

During 2004, it is planned to consider various alternative models for safeguarding the future development of the Group - including the future ownership structure. This process will also involve matters of relevance to the due diligence procedure which is likely to take place in connection with the sale of all or some of the shares in FLS Industries A/S.

The process of considering the future development will be finalised as soon as possible in 2004.

The Board is convinced that it is in the best interest of the shareholders of both Aktieselskabet POTAGUA and FLS Industries A/S that the restructuring is completed as originally planned, before entering into tentative talks on a sale.

Should Aktieselskabet POTAGUA or FLS Industries A/S be contacted by potential buyers before the above mentioned process has been finalised, such enquires will be favourably received and taken into account when considering the final model for change of ownership. This also applies to the consortium that has already approached the Board of Directors of Aktieselskabet POTAGUA, cf. our Stock Exchange Message No. 11 dated 15 September 2003.

Kgs. Lyngby, 3 October 2003
Aktieselskabet POTAGUA
Jens Münter
Chairman of the Board of Directors


FLS Industries A/S
Jørgen Worning
Chairman of the Board of Directors