A Shareholders' Meeting of the demerged Kone Corporation (business ID 0110139-9) was held in Helsinki on 7 September 2005.
The meeting approved the final settlement of the demerger and the financial statements and the consolidated financial statements for the period 1 April 2005-31 May 2005 included therein. The Shareholders' Meeting discharged the members of the Board of Directors and the President from liability for the period 1 April 2005-31 May 2005.
The proportion of net assets transferred to new KONE and Cargotec according to the final settlement approved by the Shareholders’ Meeting is as follows:
KONE Corporation: 45.08%
Cargotec Corporation: 54.92%
According to the advance ruling from the Finnish Central Board of Taxation, the acquisition cost of new KONE and Cargotec 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 new KONE and Cargotec. If it is apparent that the proportion of the net assets of new KONE and Cargotec substantially differs from the proportion of the current values of new KONE and Cargotec shares, the proportion of the current values is used as the basis for dividing the acquisition cost between the shares. On 9 June 2005, an announcement was made concerning the proportion of the current values, which was:
Proportion based on first day’s average weighted trading price:
KONE Corporation: 64.49%
Cargotec Corporation: 35.51%
Proportion based on first five days’ average weighted trading price:
KONE Corporation: 64.66%
Cargotec Corporation: 35.34%
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 1 June 2005, KONE Corporation’s first financial reporting period is 1 June, 2005-31 December 2005. Accordingly, the Corporation should have produced interim reports for periods ending in August and November. The Finnish Financial Supervision Authority has granted KONE Corporation an exception, allowing KONE to publish its 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 21 October, 2005.
Director, Secretary to the Board
Senior Vice President, Corporate Communications & IR
For further information, please contact:
Tapio Hakakari, Director, Secretary to the Board, tel. +358 (0)204 75 4226
Minna Mars, SVP, Corporate Communications & IR, tel. +358 (0)204 75 4501
KONE is the world’s fourth largest elevator and escalator company and provides complete and innovative solutions for the installation, maintenance and modernization of elevators and escalators and the maintenance of automatic building doors. KONE provides safe and easy access to hundreds of millions of people daily in all parts of the world. KONE has annual net sales of approximately EUR 2.9 billion and about 27,000 employees. Its class B shares are listed on the Helsinki Exchanges.