Aventum Partners
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May 23, 2005 LISTING PARTICULARS Cargotec Corporation _________________ On June 1, 2005, as estimated (the “Demerger Date”), Kone Corporation will be demerged by the transfer of all of its assets and liabilities without a liquidation procedure into two new public limited corporations (Oyj), Cargotec Corporation (“Cargotec”) and KONE Corporation (“New KONE”). As consideration for their shares in Kone Corporation, the shareholders of Kone Corporation will receive, in proportion to their existing shareholding, shares in Cargotec and New KONE. The shares in the new corporations will be divided into class A and class B shares. Shareholders of Kone Corporation are entitled to receive as consideration shares in Cargotec and New KONE on the Demerger Date as follows: (i) for each class A share of Kone Corporation one (1) class A share of Cargotec and one (1) class A share of New KONE, and (ii) for each class B share of Kone Corporation one (1) class B share of Cargotec and one (1) class B share of New KONE. As a result, 63,754,755 shares of Cargotec, a company incorporated in the Republic of Finland, are to be distributed to the shareholders of Kone Corporation on the Demerger Date as consideration for their shares of Kone Corporation. The nominal value of Kone Corporation’s share is one Euro (EUR 1.00). The accounting par value of a share of Cargotec will be one Euro (EUR 1.00). The ownership structure and the division of voting rights of Cargotec on the Demerger Date will be identical to the structure of Kone Corporation on the Demerger Date. The class A and class B shares differ from each other on the basis of the voting rights and the right to dividends connected to the shares. The existing option rights in Kone Corporation will be exchanged into new option rights of Cargotec (the “Cargotec Option Rights”) and new option rights of New KONE (the “New KONE Option Rights”) on the Demerger Date as follows: (i) Each series A option right of Kone Corporation will be exchanged into one (1) series A option right of Cargotec and one (1) series A option right of New KONE; and (ii) each series B option right of Kone Corporation will be exchanged into one (1) series B option right of Cargotec and one (1) series B option right of New KONE. After the exchange the holder of a present option right of Kone Corporation will be entitled to subscribe for three (3) class B shares in Cargotec and three (3) class B shares in New KONE. The current share subscription price of EUR 24.67 in accordance with the prevailing option program will be divided on the basis of the market values of Cargotec and New KONE at the time of their listing. The market values will be calculated on the basis of the trade weighted average price on the first six (6) trading days of Cargotec and New KONE, however so that the first trading day is excluded from the calculation. If the shares are listed as planned on June 1, 2005, the trade weighted average price between June 2 and June 8, 2005 will be used as the calculation basis. Cargotec shares and Cargotec Option Rights will be distributed in the book-entry system and the receipt of Cargotec shares and Cargotec Option Rights will not require additional measures by shareholders or option right holders of Kone Corporation. _________________ This document has been prepared for listing purposes only. No securities in Cargotec or New KONE are being sold or offered in connection with the listing. Kone Corporation has published a combined Demerger Prospectus and Offering Circular dated December 7, 2004 (the “Demerger Prospectus”). For further information on the Demerger and Kone Corporation, investors are advised to review the Demerger Prospectus. The Demerger is conditional upon the registration of the implementation of the Demerger in the Finnish Trade Register. It is estimated that the registration of the Demerger will take place on June 1, 2005. For further information on the listing of New KONE B shares and New KONE Option Rights, investors are advised to review the Listing Prospectus of New KONE dated May 23, 2005. Application has been made for the Cargotec class B shares (the “Cargotec B Shares”) and Cargotec Option Rights to be listed on the Main List of Helsinki Stock Exchange Ltd (the “Helsinki Stock Exchange”). Trading of the Cargotec B Shares and Cargotec Option Rights on the Main List of the Helsinki Stock Exchange is expected to commence on June 1, 2005. The last trading day of Kone Corporation class B shares and series A and B option rights is May 31, 2005. See “Investment Considerations” for a discussion of certain matters that should be considered prior to investing in the Cargotec B Shares or Cargotec Option Rights. _________________ THE CARGOTEC B SHARES AND CARGOTEC OPTION RIGHTS HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT, UNLESS SO REGISTERED, BE OFFERED OR SOLD WITHIN THE UNITED STATES TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT), EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. _________________ Manager & Financial Advisor Aventum Partners Financial Advisor UBS Investment Bank Table of Contents Certain Information with Respect to the Cargotec B Shares and Cargotec Option Rights ..................... ii Restrictions on Distribution of This Prospectus .......................................................................................... iv Demerging Company, New Company To Be Listed, Manager, Financial Advisors and Other Advisors............................................................................................................................................................ v Special Cautionary Notice Regarding Forward-Looking Statements ....................................................... vi Financial and Certain Other Information................................................................................................... vii Certain Defined Terms................................................................................................................................... ix Availability of Prospectuses and Available Information ............................................................................. x Summary .......................................................................................................................................................... 1 Summary of Unaudited Pro Forma Information ......................................................................................... 4 Investment Considerations ............................................................................................................................. 5 Dividends.......................................................................................................................................................... 9 Exchange Rate Information.......................................................................................................................... 10 Reasons for the Demerger and Listing of the New Companies ................................................................. 11 Industry and Market Overview.................................................................................................................... 12 History of Cargotec ....................................................................................................................................... 19 Business of Cargotec...................................................................................................................................... 20 Regulatory Overview and Legal Proceedings............................................................................................. 33 MD & A and Prospects ................................................................................................................................. 34 Board of Directors, Management and Auditors ......................................................................................... 44 Relationship between Companies................................................................................................................. 50 Ownership Structure..................................................................................................................................... 51 Share Ownership of Directors and Executive Officers .............................................................................. 53 Description of Shares and Share Capital .................................................................................................... 54 The Finnish Securities Market ..................................................................................................................... 61 Taxation.......................................................................................................................................................... 65 Rights Related to New Securities ................................................................................................................. 70 Appendices ..................................................................................................................................................... 71 Index to Financial Information ..........................................................................................................F-1 Appendix 1. Accounting Principles of