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| The OMX Copenhagen Stock Exchange | Kgs. Lyngby, 27 April 2007 |
| Stock Exchange Release no. 8/2007 | |
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This is a translation into English of the original stock exchange release in
Danish. In case of discrepancies between the two texts, the Danish text shall
prevail.
Hartmann to sell its operations in South America
After a number of years with considerable accumulated losses in South America,
Brødrene Hartmann A/S in 2006 decided to put its South American companies up for
sale. The Board and Management have considered several sales options and the
sales process has now been finalised.
Today a conditional transfer agreement has been signed by and between Brødrene
Hartmann A/S and the Lactosan Sanovo Holding A/S group.
The agreement is not made conditional upon further examination of the companies
on the part of the buyer. The conditions relate exclusively to the achievement
of acceptance from minority shareholders as well as to matters concerning the
transaction and taxation. The parties have agreed that the transaction will not
require Brødrene Hartmann A/S to put up any guarantees and indemnities.
The sale involves an adverse effect of approx. DKK 50 million on the result of
discontinued operations. This effect on the Group's result - as stated in the
Annual Report 2006 - has not been included in the announced expectations for
2007. As a result of the transaction, the amount in net interest-bearing debt
for the Group (including South America) will increase by approx. DKK 40 million.
The agreement involves a 5-year distribution of profit between buyer and seller.
It also follows from the agreement that Hartmann will retain ownership of a
piece of land likely to be sold before the end of the year. The overall effect
on the Group's result does not take account of a possible positive effect of
these agreements.
As announced in the Annual Report 2006, foreign exchange losses from prior years
relating to the operations in South America will be reclassified effective from
the date of the transaction from equity capital to the income statement under
the result of discontinued operations. The amount involved as of 31 March 2007
has been recognised at approx. DKK 187 million. As previously announced the
reclassification will have no effect on equity capital and liquidity.
The final completion of the transaction and, hence, the handing over of the
operations is expected to take place as soon as possible and before the end of
first half-year, as announced in the Annual Report 2006.
The operations in South America comprise three production plants in Brazil and
Argentina, where Hartmann set up business in the late 1990s. The divestment
reflects the wish of Brødrene Hartmann to consolidate and strengthen the focus
on its remaining business.
Contact: Peter Arndrup Poulsen, CEO
Peter A. Poulsen
CEO
Brødrene Hartmann A/S
