Ratos divests eight minor investments

RATOS DIVESTS EIGHT MINOR INVESTMENTS Ratos has made an agreement to divest eight minor holdings in development companies. The buyer is the venture capital company, Visionalis AB. The transfer is made at a value of SEK 189M with an opportunity of a future supplementary purchase price for Ratos. As a step in Ratos' focusing on investments in 10-20 companies with an average size of the holdings of SEK 500M, Ratos has decided to divest eight minor holdings. The eight companies which are included in the transfer are C-Technologies, Eurona, Epani, Micronic, Netch, PyroSequencing, TeleTrade and Teligent which together are equivalent to 2.3 per cent of Ratos' net asset value. The sale to Visionalis means that Ratos will now get a capital gain of SEK 26M. The agreement with Visionalis includes that Ratos will contribute to the buyer's financing through a vendor promissory note while Ratos at the same time has assured itself of an opportunity for a future supplementary purchase price. Visionalis AB is a newly-formed venture capital company which is wholly-owned by Mikael Karlsson, founder of Axis Communications AB. In connection with the divestments of the eight development companies, Olle Isberg has been appointed President of Visionalis AB. Olle Isberg has until today worked as Executive Vice President in Ratos, a post which he is now leaving. In accordance with a separate assignment agreement, Olle Isberg will continue to work on behalf of Ratos with the Active holdings: Capona, PriFast and Telelogic. "The development companies which we are now divesting have required large resources but are of little financial value for Ratos. Through the deal, Ratos will be able to focus its resources on large investments while at the same time Ratos will have part in any future growth in value in the sold companies through the opportunity of a supplementary purchase price," says Arne Karlsson, President of Ratos. "I am very pleased that we have found this solution where we will be able to continue to make use of Olle Isberg's outstanding expertise," adds Arne Karlsson. Ratos is an owner company whose business concept is to create the highest possible yield for its shareholders over a period of time through professional, active and responsible exercising of the owner role in a number of selected companies and investment situations in which Ratos creates a unique investment opportunity for the players on the stockmarket. Added values are to be created in connection with acquisition, development and sale of companies. On 12 February 1999, the net asset value amounted to SEK 7 billion and consists of Active holdings and an Asset management. Active holdings are Scandic Hotels, Dahl, Esselte, PriFast ACE, Capona, Telelogic, Telia Overseas and TV8. The Active holdings account for approximately 46 per cent of Ratos' net asset value. The remaining 54 per cent consists of Asset management. Asset management will gradually be reduced and Active holdings will correspondingly increase over the next few years through investments in mainly unlisted companies. For further information, please contact: Arne Karlsson, phone +46 8 700 17 00, +46 10 226 21 96 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/17/19990217BIT00260/bit0001.doc http://www.bit.se/bitonline/1999/02/17/19990217BIT00260/bit0002.pdf