Nordic Business Report-February 6, 2007-Ruukki Group Oyj increases stake in Incap Furniture Ltd (C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com Finnish multi-sector group Ruukki Group Oyj said on Tuesday (6 February) that it has agreed to increase its ownership interest in Incap Furniture Ltd from 47.1% to approximately 70.3% through a directed share issue. The related refinancing package by owners and financial institutions will strengthen Incap Furnitures financial position by approximately EUR3.0m. If all stock options issued by Incap Furniture are exercised Ruukki Groups ownership will dilute to approximately 65%. Ruukki Groups cash consideration in the restructuring package totals EUR0.9m. This ongoing transaction will in part continue Ruukki Groups strategy to invest in wood-based product areas and in Russia, the company said. Incap Furniture Ltd currently produces wooden furniture and wood-based combi products mainly delivered to export markets. Ruukki Group is to develop raw material purchase processes, and possibly start furniture component production in Russia. Furthermore, Incap Furniture has signed a letter of intent with Stora Enso Timber related to planned glued board production in Impilahti in Russia. Ruukki Group is a multi-sector industrial group that has mainly majority ownership interests in various small and medium-sized companies in e.g. house building and social services as well as wood processing and metal industries. Ruukki Group listed on the Nordic Exchange in Helsinki. One British pound (GBP) is worth approximately 1.49 euros (EUR). ((Comments on this story may be sent to [email protected]))