Altor and Investor to divest the majority of Lindorff to Nordic Capital
Altor (42% of equity/50% of votes) and Investor (58% of equity/50% of votes) have signed an agreement to divest the majority of their holdings in Lindorff to Nordic Capital for an enterprise value of EUR 2.3 bn., of which a conditional vendor note of a maximum EUR 200 m. plus annual interest.
Altor and Investor will retain a maximum EUR 315 m. in equity in Lindorff, of which Investor will hold 58 percent.
The conditional vendor note has a maximum value of EUR 200 m. plus 8 percent annual interest and is contingent on the return on the new equity investment. Investor will hold 58 percent of the vendor note.
“Lindorff benefits from a strong position in the mature Nordic markets where we have developed a comprehensive strategy and an integrated approach to debt collection. We now use this model as a base for our growth in continental Europe to help banks deal with their non-performing loans. We are experiencing very strong growth, and with our new owner, who has a strong track record in the financial industry, we get access to in-depth knowledge, network and additional capital to pursue our growth strategy", says Endre Rangnes, CEO of Lindorff Group.
“Lindorff has a great business model and it has developed strongly under our ownership together with Altor. We believe that Lindorff is now ready for its next development phase under a new lead owner, and we look forward to remaining as an owner”, comments Börje Ekholm, CEO of Investor AB.
The transaction values Investor’s holdings in Lindorff at SEK 8.5 bn. Upon closing of the transaction, Investor will receive at least SEK 5.8 bn. in cash, with the retained equity and the vendor note making up the balance. The positive impact on Investor’s net asset value is estimated at SEK 3.3 bn. compared to the reported value of SEK 5.2 bn. as of June 30, 2014.
Investor originally invested in Lindorff in 2008. The total capital invested amounts to SEK 4.0 bn.
Investor’s holdings in Lindorff will be reported under Other Financial Investments.
The transaction is subject to approval from the relevant competition authorities and is expected to be completed during the fourth quarter 2014.
For further information:
Stefan Stern, Head of Corporate Relations and Communications, Phone 46 8 614 2058, 46 70 636 7417
Magnus Dalhammar, Head of Investor Relations, Phone 46 8 614 2130, 46 73 524 2130
Our press releases can be accessed at www.investorab.com
Investor is the leading owner of high quality Nordic-based international companies, founded by the Wallenberg family a hundred years ago. Through board participation, our industrial experience, network and financial strength, we strive to make our companies best-in-class. Our holdings include Atlas Copco, SEB, ABB, Ericsson and Mölnlycke Health Care.