Helsinki, Finland, Feb. 7, 2014 (GLOBE NEWSWIRE) -- Metso Corporation's Pulp, Paper and Power businesses were transferred to Valmet Corporation through a partial demerger as of December 31, 2013 and Metso shareholders received one (1) Valmet share for each of their Metso shares as a demerger consideration. As a result of the demerger, the original acquisition cost of Metso shares will be split between Metso and Valmet shares under the Finnish income tax system. Acquisition costs vary, depending on the time when the shares were originally acquired. Determining this cost is necessary for tax purposes to calculate the capital gain or loss from the sale of the shares in question.
According to the Finnish Tax Administration the weighted average share prices of the first trading day on January 2, 2014 are to be used in determining the acquisition cost of Metso Corporation's and Valmet Corporation's shares for Finnish income tax purposes. As a result, the acquisition costs are to be allocated between the two companies' shares as follows: 78.80% (Metso Corporation) and 21.20% (Valmet Corporation).
Example: If a shareholder acquired a Metso share prior to the partial demerger at a cost of EUR 25.00, the acquisition cost of the Metso share following the partial demerger will be considered as EUR 19.70 (78.80%) and that of the Valmet share as EUR 5.30 (21.20%).
The method for splitting the acquisition cost of shares described above does not apply to shareholders resident outside Finland. We recommend that shareholders liable for tax living outside Finland consult their tax advisers on how the acquisition cost of their shares will be treated locally.
Metso is a leading process performance provider, with customers in the mining, construction, and oil & gas industries. Metso is also known for its advanced automation solutions for pulp, paper and power generation. Our focus is on the continuous development of intelligent solutions that improve sustainability and profitability.
Metso's shares are listed on the NASDAQ OMX Helsinki Ltd.Metso employs 16,000 professionalsin 50 countries. Expect results.
Further information, please contact:
Visa Randell, Tax Director, Metso Corporation, tel +358 20 484 3209
VP, Investor Relations
NASDAQ OMX Helsinki Ltd
Source: Metso Corporation