Stockholm Transport sells airport bus operation to its management, Atle and Nordico Invest

Stockholm Transport sells airport bus operation to its management, Atle and Nordico Invest Today, Stockholm Transport's Board approved an agreement to sell the Stockholm County Council-owned airport bus operation, Flygbussarna, to a company jointly owned by its management, Nordico Invest and Atle. As a privately owned company, Flygbussarna will expand operations outside Greater Stockholm. The deal implies the acquisition of 80% of SL Flygbussarna AB from Stockholm Transport, through a company jointly owned by Flygbussarna's management, Nordico Invest and Atle. The management will own 12% of Flygbussarna, with Nordico Invest and Atle each holding 34%. Today's agreement settles the basic terms for the deal; the parties must now negotiate over the final conditions, with the intention of transferring ownership from 1 March 2000. Commenting on the deal, Kjell Bergkvist, Chief Executive and partner, said: "In the management team, we're very confident about Flygbussarna's future progress. This ownership changeover means that we will expand our airport-related operations in Sweden, while also starting up internationally." "Market commentators unanimously predict the sustained growth of air travel, with the consequent accentuating need for transport to and from airports. As a private company, we will gain the opportunity to expand on markets outside Greater Stockholm, previously prohibited by local government legislation." The change of SL Flygbussarna AB's ownership does not affect the company's terms of employment. Mr. Bergkvist continued by underlining that "exactly the same terms of employment will apply after our take-over. Subsequently, since we expect to expand our operations, our employees will gain more career opportunities and a stronger employer, also increasing the job security of our employees in Stockholm." The sell-off means Stockholm Transport concentrating its role as principal of public transport in Greater Stockholm. The divestment means Stockholm Transport has now divested all those subsidiaries that operate bus or rail traffic. As Stockholm Transport's Chief Executive Kjell Nilsson expressed it, "we've systematically pursued a strategy of concentrating Stockholm Transport's role as procurer of public transport. By this means, we are convinced that Flygbussarna will gain even better prospects of developing its business concept and expanding on new markets." "Flygbussarna is already a successful company with a recognised market focus, healthy earnings levels and a highly developed propensity for innovation." Jan Ohlsson, Nordico Invest's Chief Executive, said "Flygbussarna has a bright future, and while the arrival of the Arlanda rail link has clearly increased competition in the Stockholm region, there's still room for Flygbussarna's offerings, which give travellers good value for money and more choice." "However, developing services outside Greater Stockholm is where the big potential lies. Flygbussarna's management has demonstrated their ability to offer competitive alternatives in a highly market-oriented manner. As Flygbussarna's new owner, we will contribute to the development of new products and services, building on Flygbussarna's foundations. Stig Karlsson, Atle Tjänste & Handel's Chief Executive, stated that "the acquisition of Flygbussarna is entirely consistent with Atle's strategy of upgrading its initiatives targeted on services sector companies. Flygbussarna is a very promising company that fits precisely into Atle's investment philosophy- we're looking for corporate managements skilled in their sectors who are developing unique concepts. "Flygbussarna's management have demonstrated their considerable ability to run profitable operations in what otherwise, is a regulated market. The potential offered by uninterrupted passenger growth and opportunities to extend operations is clear. Atle has been resolutely committed to the bus sector since 1996, and alongside players including Nordico Invest and Stockholm Transport, owns 25% of Busslink-Sweden's second-biggest bus operator, formed from the merger of SL-Buss and Näckrosbuss. More information is available from: Flygbussarna's Chief Executive, Kjell Bergqvist, on tel. +46 (0)8 686 3780, or +46 (0)70 786 3780, or Marketing VP Raymond Hellmark, on tel. +46 (0)8 686 3770, or +46 (0)70 786 3770. Stockholm Transport's Corporate Communications Executive Eva Herrder, tel. +46 (0)8 686 1535 or +46 (0)70 786 1535. Nordico Invest's Chief Executive, Jan Ohlsson, on tel. +46 (0)8 440 3810. Atle Tjänste & Handel's Chief Executive, Stig Karlsson, on tel. +46 (0)8 506 10140 Enclosure: Info on Flygbussarna, Atle and Nordico Invest Flygbussarna Flygbussarna pursues operations at three airports in the Stockholm region, while serving another six airports in Sweden through franchisees. At present, the predominant activity is the route between Stockholm Arlanda Airport and the City centre, where Flygbussarna will continue to emphasise frequent departures and service. With ticket prices half the level of the competing rail service, the prospects of retaining market leadership are bright. Apart from the Stockholm-Arlanda line, Flygbussarna also runs a number of other routes, with expanding passenger volumes. Flygbussarna carried 4.2 (3.7) million passengers in 1998, when turnover stood at SEK 197 (182) m, and earnings after financial items at SEK 13.4 (7.5) m. The year 1999 was another success, with turnover of SEK 200 m and SEK 25 m earnings. The arrival of the Stockholm-Arlanda rail link will mean a planned reduction in the year's results, although figures are expected to remain healthy. Nordico Invest Nordico Invest is a newly formed investment fund with SEK 2.5 billion of assets under management. SEK 1.5 billion is invested in 15 holdings acquired from KF Invest AB. Additionally, the fund's investors have assigned Nordico Invest a further sum of about SEK 1 bn for new investments. The fund's holdings include listed companies such as BT Industries, TurnIT and IMG, as well as unlisted holdings like Elmo-Calf, Acando and Busslink. Nordico Invest's primary investors are KF (the Swedish Co-operative Society), Bank of America Equity Partners and a series of Swedish institutions: the Fourth AP (National Pension Insurance) Fund, FöreningsSparbanken, Sirius International, LRF, SLR and KP Pension & Försäkring. Atle Atle invests in private equity, implying the company investing in unlisted companies, playing an active role in their development. After a few years of active involvement, Atle secures portfolio companies the appropriate status by means of a market listing or merger, thereby realising value growth. Since inception in 1992, Atle has invested in approximately 200 companies, and exited from over 100, generating annual returns on exits exceeding 50%. Atle maintains a high deal tempo, acquiring about 20 companies every year. Since 1993, group earnings have advanced uniformly, from SEK 373 m to SEK 953 m in 1998. Atle, quoted on the Stockholm Stock Exchange's A-list, has about 15,000 shareholders. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/24/20000124BIT00540/bit0001.doc http://www.bit.se/bitonline/2000/01/24/20000124BIT00540/bit0002.pdf