Compulsory redemption proceedings

In May 2005, Elkem Sweden AB held more than 98 percent of the shares in Sapa AB and initiated compulsory redemption proceedings in accordance with the Swedish Companies Act to acquire all remaining shares in Sapa AB.

Elkem Sweden AB was in October 2006 granted advance access to the minority shares in Sapa AB and is since beginning of November 2006 the registered owner of all shares in the company (except for own shares held by Sapa AB).

As a consequence, the previous minority shareholders have a right to a redemption amount for their shares, which will be determined within the ongoing compulsory redemption proceedings.