Jun 30, 2011. /Lesprom Network/. UPM and the Finnish pulp producer Oy Metsä-Botnia Ab (“Botnia”) have agreed a transaction whereby Botnia has redeemed approximately 6.7 % of Metsä-Botnia’s shares owned by UPM for Euro 140 million. UPM will record a capital gain of approximately Euro 70 million from the sale of the shares, as the company said in a press release received by Lesprom Network. UPM has also agreed to give a call option to the Finnish Metsäliitto Group for the remaining 11 % of Botnia still owned by UPM after the redemption and cancellation of the redeemed shares. According to the option agreement, Metsäliitto Group has the right to purchase the remaining shares within the next two years. Today’s agreements are based on the valuation of UPM’s original 17 % share of Botnia at Euro 290 million. Today’s transaction is in line with UPM’s strategy to grow as a cost competitive pulp producer and become an active market participant in global pulp markets. UPM’s annual pulp production capacity is currently 3.2 million tonnes. The group’s current asset base consists of four modern pulp mills, three in Finland and one in Uruguay. The product range covers northern hardwood and softwood pulp as well as eucalyptus pulp.