Agasti cuts cost quicker than expected and delivers on strategy

Since the end of April 2014, Agasti Holding ASA (Agasti) has reduced the amount of employees with 100 and will by the end of the 3rdquarter employ approximately 130 people. The company has also entered into an agreement relating to the Swedish business in Navigea Securities AS’ (Navigea), and will when this process is completed have divested or shut down 13 offices in Norway and Sweden. The planned cost reductions have therefore been achieved quicker than expected. From the 4thquarter, Agasti will have reduced the annual fixed cost base by NOK 100-120 million. In parallel, the group’s re-established strategy delivers results. Agasti has now established a solid business based on its two new business areas and a significantly more efficient organisation represented in Oslo, Stavanger, Stockholm, London, Luxembourg and New York.  

Two relevant transactions in investment companies managed by the Agasti group illustrates that the company delivers on its stated ambitions and business model:

The investment companies Hyresbostäder i Sverige II AB (HBS II) and Etatbygg Holding I and II, all managed by Agasti subsidiary Obligo Investment Management, is in process with structural changes that safeguard shareholder value and flexibility for the shareholders. This is in accordance with the group’s redefined management strategy.

“With these moves, Agasti, on behalf of clients and investors, aims to generate the best possible return, highlight underlying portfolio values, ensure improved liquidity and provide shareholders with more options, says Jørgen Pleym Ulvness, managing director of Agasti Holding ASA.

On 3 June 2014, Agasti entered into an agreement with Söderberg & Partners regarding the transfer of parts of Navigea’s Swedish operation. Under the agreement, Söderberg & Partners has the right to work with parts of the company´s Swedish customers to provide consulting services. The agreement includes a small amount of cash and a revenue sharing agreement for clients who choose to be served by Söderberg & Partners going forward. Söderberg & Partners is amongst the most reputable wealth management organisations in Sweden. Agasti will contribute towards ensuring the smoothest possible transfer for the clients who choose this solution. Agasti maintains its brokerage services and Obligo-related activities in Sweden, based out of its Stockholm office.

As communicated on several occasions in the past few months, Agasti expects that the Financial Services Authority soon will confirm its notice of revocation of Navigea’s licenses to provide investment advisory services. Based on this, Agasti will liquidate its invest advisory business by the end of 2014.

“In connection with our 1st quarter presentation on 11 February, we said that we would make the necessary changes quickly and efficiently. We have delivered on that promise. The comprehensive changes that have been made over the past few months have laid a foundation that ensures that customers of the Agasti group are serviced more effectively while their investments and future investment needs are well managed through Obligo Investment Management and Agasti Wunderlich Capital Markets. We have a robust business based on our new business areas, an efficient organization and a platform consisting of capital management, corporate finance and brokerage services with solid distribution capacity. The underlying operation is healthy and we have strong ambitions for the future,” says Jørgen Pleym Ulvness.

For further information, please contact:
Jørgen Pleym Ulvness, managing director, telephone: +47 906 67 877
Christian Dovland, CFO, telephone: +47 908 84 730
Tor Arne Olsen, communication director, telephone: +47 900 90 470