NCC slims to concentrate on core business

NCC slims to concentrate on core business: Sale of Neptun Maritime holding yields capital gain of approximately SEK 100 million Spin-off of Hufvudstaden holding to shareholders Portfolio of managed properties reduced to SEK 4 billion NCC is currently taking three powerful steps to further concentrate its operations to the Group's core construction and real estate development. Sale of Neptun Maritime holding NCC is selling its Neptun Maritime holding to Sea Containers. A total of 65 percent of the shareholding is being sold for cash, at a price of FIM 18 per share, corresponding to approximately SEK 370 million. At the same time, an option has been signed entitling the purchaser to acquire the remaining holding in three years time for FIM 15 per share. Since Neptun Maritime shares had a market price of FIM 13,70 on March 12, the cash portion of the transaction corresponds to a premium of slightly more than 30 percent in relation to the current price on the stock market. The cash sale will yield a capital gain of about SEK 100 million. "This is a highly favorable transaction for all the parties concerned. It enables NCC to further concentrate on its core business of construction and real estate development, while Neptun Maritime gains an industrial owner with the resources required to continue to develop the operations," says Jan Sjöqvist, NCC's President and Chief Executive Officer. Sea Containers is active in three areas: the manufacturer and sale of marine containers, the ownership and operation of ferries and harbors and the operation of hotels and exclusive tourist railway lines. The company is listed on the New York and London stock exchanges. Sea Containers had annual sales of approximately SEK 9 billion in 1997, with slightly more than 8,000 employees in more than 80 countries. Spin-off of Hufvudstaden At NCC's Annual General Meeting on April 15, it will be proposed that NCC's shareholding in Hufvudstaden, which has a book value of slightly more than SEK 400 million, be spun off to shareholders. Each NCC share will carry entitlement to a fraction of a share in Hufvudstaden; 400 share fractions will carry entitlement to 50 Hufvudstaden shares. For smaller shareholders who own less than 400 NCC shares, the share fractions will be sold in the market, following which the owners will receive a commission-free cash payment. NCC's holding of Series C Hufvudstaden shares will be sold in the market. Portfolio of managed properties to be reduced to SEK 4 billion As part of the strategy of conducting project development as a core business, with the management and sale of properties as supporting activities, NCC intends to undertake an additional forceful reduction of its portfolio of managed properties. The Group has concluded that, at the present time, an optimal size of the managed portfolio would be approximately SEK 4 billion, compared with the current value of SEK 8.7 billion for its wholly and partly owned properties. The portfolio will be adapted in stages, as and when market conditions permit. As a result, NCC's future portfolio of managed properties will be concentrated in a few expansive locations in Sweden and, in exceptional cases, in the three other major Nordic capitals. The objective is to maintain a high rate of turnover of managed properties. Increase in unrestricted shareholders' equity In order to increase the Group's unrestricted shareholders' equity, it will be proposed that NCC's Annual General Meeting on April 15 approve the transfer of SEK 1,751 million from restricted equity to unrestricted funds. Accordingly, unrestricted funds in the Parent Company will total approximately SEK 2,200 million, following the payment of the dividend proposed by the Board of Directors. For further information, please contact: Jan Sjöqvist, NCC's President, Tel: +46-8-655 22 78. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/03/16/19990316BIT00020/bit0001.doc http://www.bit.se/bitonline/1999/03/16/19990316BIT00020/bit0002.pdf