Helsinki Media and Sanoma Corporation, currently being merged with Werner Söderström Osakeyhtiö - WSOY to form Sanoma-WSOY Oyj, have made an agreement with the TS-Group concerning their printing operations.
Werner Söderström Osakeyhtiö - WSOY, Sanoma Corporation, Helsinki Media Company Oy and Oy Devarda Ab have agreed to merge by founding a new company whose proposed name is Sanoma-WSOY Oyj. The merger plan was approved on June 29, 1998 by the general meetings of the three last-mentioned companies, and presented at WSOY's general meeting. WSOY will deal with the matter in two general meetings. The second handling will be on August 10, 1998. The scheduled implementation date for the merger is May 1, 1999.
PRINTING COOPERATION BETWEEN HELSINKI MEDIA AND TS-GROUP
Helsinki Media Company Oy and TS-Group have today executed a pre-agreement under which the two companies will join their commercial printing operations as from January 1, 1999. The parent company of the new printing entity will be Hansaprint Oy, and Helsinki MediaPrint which will be incorporated, will become Hansaprint Oy's wholly owned subsidiary. TS-Group will hold 60 per cent and Helsinki Media 40 per cent of the new corporation.
The printing group resulting from this arrangement will have good possibilities to operate also in international markets, for instance as an export printing company in other Nordic countries, Russia and the Baltic region. The estimated net sales of the new group will be FIM 700 million in 1999 and its workforce will exceed 600. Its principal product lines will be magazines, telephone directories, direct marketing products and technical product manuals.
Hansaprint Oy has many business activities in Russia. Following the rationalization, it will have improved possibilities to commit resources to this market especially in so-called gateway printing, and to speed up implementation of production projects in Russia.
Hansaprint Oy's associates include Polytypos Oy, Hansapost Oy and Newprint Oy.
The present president of Hansaprint will continue as the president of the new Hansaprint Oy.
PRINTING COOPERATION BETWEEN SANOMA CORPORATION AND TS-GROUP
A pre-agreement on cooperation in newspaper printing has today been executed also between TS-Group and Sanoma Corporation. It has been agreed to study in connection with the upgrading of Turun Sanomat's present printing machine the possibility of ensuring printing of Turun Sanomat at the Forssa printing plant to maintain safety of
production during the installation of the machine. Also the suitability of the Forssa printing plant for continued printing of Turun Sanomat will be analyzed in that connection.
Sanoma Corporation needs to modernize its 20-year old machinery at Sanomala printing plant in the next few years. Sanomala's replacement investment will also require an extension of the Forssa plant, permitting printing cooperation with Turun Sanomat. The common objective is to subsequently transfer the printing of Turun Sanomat to the Forssa printing plant when the now renovated newspaper rotation operation of TS-Group will no longer be competitive in the future.
WERNER SÖDERSTRÖM OSAKEYHTIÖ - WSOY
Aarno Heinonen Executive Vice President
Jaakko Rauramo President and CEO
HELSINKI MEDIA COMPANY OY
Tapio Kallioja President
For more information: In questions concerning Sanoma Corporation Mr. Jaakko Rauramo; President and CEO, Sanoma Corporation; tel. +358 9 1221; and In questions concerning Helsinki Media Company Oy Mr. Tapio Kallioja; President, Helsinki Media Company Oy; tel. +358 9 1201, or +358 400 406 236
Distribution: Helsinki Stock Exchange Principal media