Sweden's Momentum Group launches offer for tools supplier Swedol
11/11/2019 08:03
STOCKHOLM, Nov 11 (Reuters) - Sweden's Momentum Group
MMGRb.ST on Monday launched an offer to buy tools and work
wear supplier Swedol SWOLb.ST for 46.50 crowns ($4.79) per
share, saying a merger with its Tools business would boost
margins, sales and profits.
Momentum Group, a reseller of industrial consumables and
components, said Swedol's shareholders could choose between a
cash offer or swap each Swedol share for 0.40 B-shares in
Momentum.
Swedol's independent bid committee unanimously recommended
the cash offer.
Momentum Group said in a statement that the cash offer
represents a premium of 39.0% compared to Swedol's closing price
on Friday, while the share consideration represents a premium of
25.1% based on the closing prices of both companies' shares.
Swedol's largest shareholder, Nordstjernan AB, with around
67% of shares and 72% percent of the votes, said it would accept
the share consideration.
Momentum Group said Swedol's operations would be part of its
business area Tools & Consumables, which would have revenues of
around 8.5 billion crowns and an operating margin (EBITA) of
roughly 6.5%.
It added that the proposed transaction had the potential to
boost the businesses' operating margin to approximately 10
percent.
($1 = 9.7061 Swedish crowns)
(Reporting by Helena Soderpalm; Editing by Simon Johnson)
((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))