Broström plans acquisitions

Broström plans acquisitions · Broström has for some time had discussions with the owners of some part-owned vessels/business activities within the European product and chemical tanker shipping business in order to acquire the outstanding parts. Broström also intends to make further acquisitions with the aim of consolidating within its market segments. · The acquisitions will be paid for with new issued B shares in Broström, equivalent to a maximum of 17.7 per cent of the capital and 11.5 per cent of the voting rights. · As a result the Board gives notice of an extraordinary general meeting on 1 December 2004 in order to authorise the issue of a total of 6,300,000 B shares in order to acquire parts in vessels and business activities. It is the opinion of the Board that the acquisitions will have a positive impact on the net result per share in Broström. "An even more streamlined group structure is positive for Broström and will create possibilities for a more efficient operation. Furthermore, our flexibility will increase so that we are able to meet the market demands for rapid changes in a better way", says Lennart Simonsson, Managing Director of Broström. A substantial part of Broström's business in Shipping is built on part-owned activities. During a build-up phase this has been a deliberate strategy and an important financing source in order to reduce Broström's financial and operational risk-taking. Broström now intends to offer to acquire outstanding interests in some part-owned vessels/business activities so that they will be completely owned by Broström. The aim of this is to increase Broström's transparency and by that illustrate the scope of Broström's business. A full ownership is also considered to facilitate the future renewal of the fleet. Broström has for some time had discussions with owners of some part-owned vessels/ business activities in order to acquire their interests. Through its part-ownership Broström is well informed about the vessels/activities to be acquired. These discussions have now reached a stage when the Board of Directors of Broström is of the opinion that there are good possi-bilities to finalise several or all of these negotiations in the near future. The acquisitions will be published as they are completed. Broström also intends to accomplish further acquisitions with the aim of consolidation within its market segments. With a view to maintain a strong financial position and to enable a continued participation in future structural changes in the business, the acquisitions are meant to be settled with up to 6,300,000 new issued shares of series B in Broström, equivalent to 17.73 per cent of the number of outstanding shares and 11.52 per cent of the number of outstanding votes after full utilisation of the authorisation. It is the Board of Directors' opinion that the acquisitions will have a positive impact on the net result per share in Broström. In order to finalise these discussions the Board of Directors proposes the extraordinary general meeting of shareholders in Broström to authorise the Board of Directors to decide on a new share issue of a total of 6,300,000 shares of series B for a consideration of capital contributed in kind, on one or several occasions. The authorisation can be used up until the next annual general meeting in Broström. The intention is that the owners of these part-owned vessels/business activities should remain as long-term shareholders in Broström after completion of the transactions. In some case a sale of the received shares might be considered. Such a sale will then be made in consultation with Broström. An extraordinary general meeting will in accordance with the notice be on 1 December 2004. Shareholders in Broström exceeding 50 per cent of the number of votes are supportive of the proposal of the Board of Directors. Göteborg, 12 November 2004 BROSTRÖM AB (publ) For further information: Lennart Simonsson, CEO Broström, Tel +46 31 61 61 00 More information about Broström can be found on www.brostrom.se Broström is one of the leading logistics companies for the oil and chemical industry, focusing on industrial product and chemical tanker shipping and marine services. Broström is based all over the world and operates within two areas: Shipping and Marine & Logistics Services. Broström's head office is located in Göteborg, Sweden. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/11/12/20041112BIT20540/wkr0001.pdf Press release in pdf