IBS proposes a rights issue to raise approximately SEK 400 million to support its ongoing activity program and to facilitate further profitable expansion
(Not for distribution in the United States of America, Canada, Japan or Australia)
- Subscription price of SEK 9.50
- Issue ratio of 1:2 (2 old shares entitle to 1 new share)
- Subscription period June 10 – June 27, 2008
- Fully guaranteed
- Extraordinary shareholders’ meeting on May 20, 2008.
IBS today announces that it proposes a rights issue to raise approximately SEK 400 million to accelerate the ongoing activity program and to facilitate further profitable expansion within its core customer segments. Supported by the additional capital from the proposed rights issue, IBS will be able to improve profitability by making investments in new and expanding geographic markets, complete the new product offerings, continue the shift of resources to low-cost countries and to implement other cost measures within the current activity program. In addition, IBS intends to use the proceeds to pay down its debt in order to strengthen the company’s financial position.
The rights issue is in line with the overall strategy to continue developing and solidifying IBS’ position as the leading international supplier of software and professional services within supply chain management for selected market segments. The rights issue will be fully guaranteed by Deccan Value Advisors (“Deccan”). The largest owner of IBS, Case Asset Management is positive towards the rights issue.
In the first quarter, IBS initiated a new phase of the ongoing activity program with a new organization implemented globally, representing a move from a decentralized country-by-country organization to a global organization based on business lines. With this new structure implemented, IBS is well placed to take advantage of an investment in a broadened market offering with the intention and opportunity to grow the company profitably. Furthermore, IBS can ramp up the successful outsourcing of technical services to resource centers in low-cost countries.
Deccan, currently the owner of 8 percent of the share capital of IBS, has towards the company committed to subscribe for its pro rata share of the rights issue and to subscribe for any remaining shares not taken up by others. Thus, the rights issue will be fully subscribed, meaning that approximately 42 million new shares will be issued for a total consideration of approximately SEK 400 million.
Carnegie and Delphi are IBS’ advisors in connection with the rights issue.
The Board of IBS has convened an extraordinary shareholders’ meeting to be held on May 20, 2008 to resolve on the new issue. The formal notice of the extraordinary shareholders’ meeting will be published on Friday May 2, 2008.
Timetable:
May 20, 2008
Extraordinary shareholders’ meeting to resolve on the rights issue.
June 3, 2008
First day of trading in the IBS share excluding right to participate in the rights issue.
June 5, 2008
Record day for participation in the rights issue, i.e. shareholders registered in the share register of IBS as of this day will receive subscription rights for participation in the issue.
June 10 – June 24, 2008
Trading in subscription rights.
June 10 – June 27, 2008
Subscription period.
A prospectus containing full terms and conditions and information regarding IBS will be made public and distributed to the shareholders before the commencement of the subscription period.
For more information, please contact:
CEO
Erik Heilborn
Tel: +46 (0)70 242 52 30
erik.heilborn@ibs.net
CFO
Lennart Bernard
Tel: +46 (0)70 627 23 54
lennart.bernard@ibs.net
Investor Relations Director
Oskar Ahlberg
Tel: +46 (0)70 244 24 75
oskar.ahlberg@ibs.net
This press release does not constitute an offer of any securities of IBS. The rights issue is not directed towards shareholders or other investors in the United States of America, Canada, Japan or Australia or other countries where participation would require further prospectuses, registration or other measures than those pursuant to Swedish law. No shares, interim shares, subscription rights or other securities of IBS have been or will be registered under the United States Securities Act of 1933, under the securities laws of any state of the United States or under any province law in Canada. Therefore, no new shares, interim shares, subscription rights or other securities of IBS may be offered or sold, renounced, taken up or delivered in the United States or Canada except pursuant to an exemption from registration.