Investment AB Kinnevik (publ) ("Kinnevik") has today entered into an
agreement with a wholly owned Swedish subsidiary of the Icelandic
investment company Milestone ehf., ("Milestone") to sell all its
shares in Invik & Co. AB (publ) ("Invik") for a total consideration
of SEK 1,088,843,230, corresponding to SEK 253 for each class A share
and SEK 230 for each class B share. The sale is conditional on
Milestone obtaining approvals from the relevant financial supervisory
authorities.
Kinnevik's agreement comprises 2,148,710 class A shares and 2,370,520
class B shares in Invik, representing 14.5% of the capital and 25.3%
of the votes. When the sale is completed, Kinnevik will not own any
shares or other financial instruments in Invik. The sale will have a
positive impact on Kinnevik's result of SEK 251 million in the second
quarter of 2007, corresponding to the difference between the market
value of the shares on 31 March, SEK 838 million, and the sale
proceeds. Following completion of the sale, Kinnevik's net debt will
be reduced by an amount equal to the sale proceeds.
Invik was spun off to Kinnevik's shareholders on 1 September 2005 and
the closing price for the class B share on the first trading day
amounted to SEK 66. The total return, including dividends, will
therefore amount to 258% for those Kinnevik shareholders that
received class B shares in 2005 and now accept Milestone's offer. The
sale price of SEK 230 per class B share represents a premium of 35.3%
compared to Invik's average share price over the last three months
and 23.0% compared to the latest available closing price on 25 April.
Invik's class A share is not listed.
Kinnevik's agreement with Milestone includes that Milestone already
today announces a voluntary offer for all outstanding shares and
other financial instruments in Invik and hence all Invik's
shareholders are offered to sell their shares at the same price as
Kinnevik. If Milestone were to increase the price in the public offer
to other Invik shareholders, the agreement entitles Kinnevik to be
compensated for the difference. In the event that Milestone sells the
shares in Invik acquired from Kinnevik in a competing offer, Kinnevik
has the right to receive 80% of Milestone's gain in such a
transaction.
The sale is conditional on Milestone obtaining approval from relevant
financial supervisory authorities and is expected to be completed in
June 2007.
Mia Brunell, Chief Executive Officer of Investment AB Kinnevik,
comments on the transaction: "Invik is a well-managed and successful
company. In the consolidation taking place in the Nordic financial
markets, we have decided to sell our shares at a price level which we
deem attractive for us and Invik's other shareholders. The sale gives
Kinnevik increased financial flexibility to invest in new growth
markets."
Karl Wernersson, Chairman of Milestone, said: "We are delighted to
begin a new chapter in the development of the Milestone group. Invik
is a major strategic step in our expansion outside of Iceland, and
brings some of the best talent in Nordic financial services with it.
We believe the acquisition of Invik will fuel our expansion within
the Nordic region and position Milestone as a growing participant in
the Nordic financial services arena."
JPMorgan is acting as financial adviser to Kinnevik in relation to
the transaction.
For further information, visit www.kinnevik.se or contact:
Mia Brunell, Chief Executive Officer +46 (0) 8 562 000 00
Henrik Persson, Investor relations +46 (0) 8 562 000 87
Investment AB Kinnevik's objective is to increase shareholder value,
primarily through net asset value growth. The Parent Company manages
a portfolio of long-term investments in a number of listed companies
such as Tele2, Modern Times Group MTG, Millicom International
Cellular, Metro International and Transcom WorldWide. Kinnevik plays
an active role on the Boards of its listed holdings.
The Company's subsidiaries are principally active in cartonboard and
paper production through Korsnäs, and farming through Mellersta
Sveriges Lantbruk.
Investment AB Kinnevik's class A and class B shares are listed on the
Stockholm Stock Exchange's Nordic list for large-cap companies within
the financial and real estate sector. The ticker codes are KINV A and
KINV B.
