KMT divests real estate company - capital gain of SEK 100 M

KMT divests real estate company - capital gain  of SEK 100 M

KMT Group has signed an agreement to divest all of its shares in KMT Real Estate
AB for approximately SEK 170 M, which will generate a tax-free capital gain of
slightly more than SEK 100 M. The gain will be reported during the third
quarter. The buyer is NLI Fastigheter Holding AB, which is owned and controlled
by Orkla Finans Kapitalförvaltning ASA. The planned takeover date is July 12.

KMT Real Estate's primary asset is the Städet 12 property in Lidköping, which
furnishes space to 23 other tenants in addition to KMT Lidköping. In connection
with the divestment, KMT has signed a ten-year lease with the buyer. 

KMT Group will receive approximately SEK 138 M for the shares and the buyer
redeems a promissory note loan of approximately SEK 32 M. Combined, this entails
a capital gain of slightly more than SEK 100 M, which will be reported in the
third quarter.  

As previously communicated, KMT Ursviken was sold to the Finnish private equity
fund Sentica as of June 25. The purchase price was approximately SEK 100 M,
which generated a capital gain of approximately SEK 50 M. The amount will be
reported in the second quarter. 

In addition, KMT Precision Grinding will be implementing a major restructuring
program due to an unsatisfactory inflow of orders and deficient profitability.
This will entail significant non-recurring expenses that will be charged to the
third-quarter results. 

Cash flow from all of the aforementioned events is estimated to amount to
approximately SEK 150 M, net. 


For additional information, please contact:
Lars Bergström, President and CEO, KMT Group AB
Tel.: +46-8-594 211 50; e-mail: lars.bergstrom@kmtgroup.com