Skanska offers to acquire Selmer, Norway's largest construction company

Skanska offers to acquire Selmer, Norway's largest construction company Skanska will make an offer to acquire all the outstanding shares of Selmer ASA at a price of NOK 110 (SEK 111) per share after the previously announced dividend of NOK 4 (SEK 4) per share is paid. Commenting on the offer, Claes Björk, CEO of Skanska AB, says: "We welcome this opportunity to expand our core operations in Europe. Selmer is highly reputable, profitable and well managed. Skanska will gain an expanded customer base as well as a greater geographical coverage. It is very encouraging that the Selmer Management and Board of Directors support our offer." Skanska has already obtained pre-acceptances from shareholders that own more than 50% of the shares. The offer will be conditional on the acceptance from shareholders of Selmer representing more than 90% of the share capital. An offer document will be sent to the shareholders after Easter. The offer is also conditioned to approval from Norwegian and Swedish authorities. The purchase price amounts to NOK 2,325 M (SEK 2,348 M). Selmer reported profit before taxes during 1999 of NOK 306 M (approximately SEK 309 M) and sales of NOK 7.2 billion (SEK 7.27 billion). The acquisition will enhance earnings for Skanska on a stand-alone basis. In addition substantial synergy effects have been identified. The offer represents a 1999 P/E of 11.4 x and a 1999 EBITDA multiple of 4.9 x. "Selmer is well positioned to continue its growth. Selmer will also benefit from Skanska's financial and project development strengths in particular the growing sectors of residential and commercial development as well as IT-infrastructure development," says Anders C Karlsson, President of Skanska Europe. After the acquisition, the combination of Selmer's and Skanska's Norwegian operations will have approximately 5,000 employees and sales of approximately NOK 7.000 M, and the Swedish operations will increase to approximately 16,000 employees and sales of SEK 24.8 billion. A press conference with the CEOs of Skanska and Selmer will be held today Thursday April 13 at Radisson SAS, Holbergs gate 30 in Oslo, starting at 14.00 CET. A telephone conference will be held today starting at 15.00 CET. To participate in the telephone conference, please call the operator Genesys, telephone +44 (0) 20 8240 8241, not later than 5 minutes before the start of the telephone conference. There will be the possibility to listen to a replay of the teleconference, which will be available for 5 days immediately following the teleconference. The number to dial is +44 (0) 20 8288 4459, Access code: 682182 Selmer Group - Key financial data 1999 Acquisition priceNOK 2,325 M Price per share NOK 110 Net sales NOK 7.2 billion Pretax profit NOK 306 M Net profit NOK 204 M Operating margin 4.3% Order book (Dec 31 1999) NOK 4,737 M For further information please contact: Anders C Karlsson, President of Skanska Europe, +46 70 524 74 80 Peter Wallin, Head of Investor Relations, Skanska AB, +46 70 953 88 66 Tor Krusell, Head of Communications, Skanska AB. +46 70 543 87 47 This and previous releases can also be found at www.skanska.com The Skanska Group Skanska is one of the world´s leading groups in construction services and project development. Founded in 1887, it is currently operating in some 50 countries, with the US, Sweden, Finland and Denmark as principal markets. In 1999, the Group had total net sales of over SEK 79 billion (USD 9 billion) and some 45, 000 employees. Selmer Group Selmer is the leading general contractor in Norway with more than 4,700 employees and a turnover of approximately NOK 7.2 billion. Selmer was established in 1906 and the company today carries on the traditions from several large Norwegian contracting companies. The company is organized with one Building Division and one Civil Engineering Division which execute all kinds of contracts through regional establishments all over Norway. Both divisions have subsidiaries and jointly controlled companies tied to their operation. The contracts in the civil engineering market comprise roads, bridges, harbors and quays, larger industrial structures, civil defense facilities, hydropower projects, tunnels, rock caverns and dams. Selmer performs all kinds of building contracts, from industrial and commercial buildings to housing, hotels, schools, hospitals, sports facilities and refurbishment of buildings. Selmer has wide competence as project developer and experience from all kinds of contracts. The production is supported by specialist departments for concrete technology, shuttering, engineering design. Selmer is certified according to NS-ISO 9001/EN 29001. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/13/20000413BIT00390/bit0001.doc http://www.bit.se/bitonline/2000/04/13/20000413BIT00390/bit0002.pdf