Changed ownership in advisory company EQT Partners AB
Investor AB has reached an agreement to sell 36 percent of its ownership stake in EQT Partners AB to the partners of the advisory company for EUR 31.2 m. (approximately SEK 290 m.). The transaction, which requires the approval of Investor AB’s Annual General Meeting on March 27, 2007, will reduce Investor’s ownership stake in EQT Partners AB from 67 percent to 31 percent. The purchasing partners already own 33 percent of EQT Partners AB today. The change in ownership is designed to strengthen the platform for EQT’s continuing development and make EQT’s independence clearer. Investor has solicited fairness opinions for the transaction.
EQT Partners AB has approximately 120 employees and advises 11 funds today. The change in EQT Partners AB’s ownership will not affect Investor’s agreements with these funds. Investor will remain the largest investor and sponsor of the funds on unchanged financial terms and conditions, including Investor’s part of the carried interest and the surplus from management fees.
SEK m. 2002 2003 2004 2005 2006
Net sales 187 231 241 245 348
EBIT 38 41 39 37 47
Investor was one of the founders of EQT’s private equity operations in 1994 and has been the largest sponsor of all of EQT's funds over the years. However, as EQT’s funds have grown in size, Investor’s holdings in the funds have decreased. Within the European-based funds, Investor’s share has fallen from a high of 32 percent in EQT III to 12 percent in the most recently established fund EQT V.
On December 31, 2006, Investor’s total holdings in EQT’s funds were valued at SEK 8.9 bn. Investor’s outstanding capital commitments to the funds amounted to SEK 8.7 bn. on the same date.
”The proposed deal is a natural step in EQT Partner’s development and puts the advisory company in a good position to build its business further. We are confident that our existing and future investments in EQT’s funds will continue to generate attractive returns,” commented Investor President and CEO Börje Ekholm in a statement.
For further information:
Lars Wedenborn, Executive Vice President and CFO:
+46 8 614 21 41, +46 735 24 21 41
Oscar Stege Unger, Acting Head of Corporate Communications and Head of Investor Relations: +46 8 614 20 59, +46 70 624 20 59