Peab proposes distributing its industry companies

The Peab board of directors will ask the AGM in May 2007 to pass a resolution accepting a proposed distribution of all the company’s industrial activities to the shareholders. Distribution will take the form of shares in a subsidiary to be named Peab Industri AB.

The companies which will form Peab Industri are Swerock (factory concrete, rock and gravel, transport), S:t Eriks (concrete production), Skandinaviska Byggelement (prefabrication), Peab Asfalt (manufacture and laying of asphalt), Lambertsson (machine and crane hire). This corresponds to today’s Industry business area. Above that will also Peab Grundläggning (foundation-laying activities) and Netel (infrastructure activities for the provision of telecommunications, data and electric power networks) be included.

In 2005, Industry companies sales amounted to approximately SEK 5 billion with operating profits of approximately SEK 400 million. As at 30 June 2006, these companies employed some 2,000 people.

The board of directors proposes issuing A and B shares in Peab Industri. It is intended to list the B shares on The Nordic Exchange, at the latest by the third quarter of 2007. Shares will be distributed in accordance with “Lex Asea”.

Peab Industri and the remaining part of Peab, which means construction and civil engineering, will continuously have Sweden, Norway and Finland as its home market. As a consequence of this distribution there will be increased focus on specialisation and development of both companies together with an increased competitiveness. The purpose is to develop the activities with focus on profitability and growth in a continued strong Nordic construction market.

At the AGM, the board of directors also intends to propose adjusting the terms of Peab’s convertible promissory notes 2005/2008, by opening an extra opportunity to convert, to enable personnel who subscribed to convertibles in 2005, to participate in the distribution of Peab Industri.

- Companies in Peab Industri which it is now planned to distribute to shareholders will continue to be closely associated with Peab’s construction and civil engineering activities as suppliers and partners. Distribution will create improved opportunities for specialisation and development both within Peab’s construction and civil engineering activities and Peab Industri, and it is assessed that this in time will boost shareholder value, says Peab MD Mats Paulsson in a comment.

Detailed information will be distributed at the latest by the time of publishing the 2006 year end report on 15 February 2007.




For further information contact:
Mats Paulsson, MD Peab +46 431 89 135
Mats Leifland, deputy MD +46 733 37 10 06
Gösta Sjöström, information manager Peab +46 733 37 10 10

Previous press releases from Peab are available at www.peab.com