17 Nov 2008

Payment received for sale of Oxenøen

On 9 September, Norske Skog announced that it had sold the Oxenøen property at Lysaker, outside Oslo for NOK 429.5 million to a company owned by Aspelin Ramm and OBOS. The payment for this sale has now been received and the buyers have taken over the property.
Norske Skog currently has its main office on the property. A lease has been signed between Norske Skog and the new owners which will allow Norske Skog to remain at Oxenøen for a period of time.
The sale of Oxenøen is part of the work to reduce Norske Skog's debt. Norske Skog has sold property worth a total of about NOK 700 million in 2008. Norske Skog has also sold two mills in Korea, for cash receipts of about NOK 3.8 billion.
So far in 2008, Norske Skog's net interest-bearing debt has been reduced from NOK 16.4 billion to pro forma NOK 12.3 billion. At the end of the third quarter, the gearing (net interest-bearing debt/equity capital) was 0.89. Following the sale of Oxenøen, the pro forma gearing has been reduced to 0.86.
The sale of Oxenøen yields a book gain of NOK 230 million, which will be recognized in the accounts for the fourth quarter of 2008.
Norske Skog's cash balance was NOK 5.7 billion at the end of the third quarter. After receiving payment for the sale of Oxenøen, the pro forma cash balance is approximately NOK 6.1 billion.
Oxenøen, 17 November 2008
Norske Skog
Corporate affairs