Skanska acquires the Estonian construction company EMV
Skanska acquires the Estonian construction company EMV Skanska Oy is expanding and strengthening its activities in the Baltic countries through the acquisition of the majority of the shares in the Estonian listed construction company EMV Ltd. Skanska Oy has signed agreements to acquire a majority shareholding in EMV Ltd. from the Baltic Republics Fund, Hansa Investment Fund and a number of private investors. The transactions are effective as of January 3, 2000, whereafter Skanska Oy owns 61.0% of the shares of EMV Ltd. The price paid per share is EEK 30 (about SEK 16) for all the transactions. This corresponds to a total purchase price of EEK 86.7 million (about SEK 47.4 million). In addition, Skanska has launched a tender offer to all shareholders of EMV Ltd. to purchase the remaining EMV shares outstanding at the same price per share. The acquisition will have a positive impact on Skanska Oy's earnings in 2000. EMV Ltd. is one of the leading construction companies in Estonia. EMV's construction services cover both housing and civil engineering. EMV operates in Estonia, Lithuania and Latvia and the company's headquarters are located in Tallinn. EMV Ltd. reported sales of EEK 778 million (about SEK 425 million) in 1998 with 542 employees. Skanska has been operating in Estonia since 1994 and already has a subsidiary in the country, Skanska Ehituse AS. "The acquisition is in line with Skanska's strategy to grow in Central and Eastern Europe. The acquisition of EMV Ltd. strengthens Skanska's construction services in the Baltic countries. We have a successful presence in Estonia and there are now even better possibilities to serve our clients in this region," says Eero Makkonen, President of Skanska Oy . "That Skanska Oy has become the controlling shareholder of EMV Ltd. is a sign of a new development phase in EMV. It creates the basis for EMV to become a significant pan-Baltic company. In addition to Estonia, where EMV is already firmly established, this increases our possibilities to also deliver construction services in Latvia and Lithuania," says Jaanus Otsa, Chairman of the Board of EMV Ltd. Key figures for EMV Ltd. 1998, EEK million (Estonian Kroon) Net sales 778 (SEK 425 M) Operating income 9.4 (SEK 5.1 M) Loss after net -1.9 (SEK -1.0 M) financial items Net profit after 0 (SEK 0) taxes Total assets 270. 8 (SEK 148.1 M) Number of employees 542 Stockholm, January 3, 2000 SKANSKA AB Group Communication For further information, contact: Mauri Niemi, Senior Vice President, Skanska Oy, tel. +358-9-6152 2320 Jaanus Otsa, Chairman of the Board, EMV Ltd., tel. +372-640-3300 This and previous releases are also available on www.skanska.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/03/20000103BIT00200/bit0001.doc http://www.bit.se/bitonline/2000/01/03/20000103BIT00200/bit0002.pdf