Brief: Ambea to buy Aleris care operations

Ambea publ AB

16/10/2018 06:08

Oct 16 (Reuters) - Ambea AB (Publ)  AMBEA.ST :
    * AMBEA HAS ENTERED INTO AN AGREEMENT TO ACQUIRE THE CARE
OPERATIONS OF ALERIS
    * SAYS HAS ENTERED INTO AN AGREEMENT TO ACQUIRE CARE
OPERATIONS OF
ALERIS IN NORWAY, SWEDEN AND DENMARK ("ALERIS CARE") AT A
PURCHASE PRICE OF SEK 2.6 BILLION ON A DEBT FREE CASH FREE BASIS
    * SAYS TRANSACTION IS SUBJECT TO REGULATORY APPROVAL BY
RELEVANT
COMPETITION AUTHORITIES AND CLOSING IS EXPECTED TO OCCUR DURING
Q1 OF 2019, HOWEVER NO LATER THAN IN Q2 OF 2019
    * SAYS INTENDS TO FINANCE TRANSACTION WITH EXISTING CREDIT
FACILITIES AND NEW, SECURED BANK FINANCING
    * SAYS IN ORDER TO REPAY PART OF BANK FINANCING AND TO LOWER
AMBEA'S DEBT IN LINE WITH COMPANY'S LONG TERM FINANCIAL TARGETS,
AMBEA INTENDS TO PROPOSE THAT A GENERAL MEETING RESOLVES ON A
SHARE ISSUE, WITH PREFERENTIAL RIGHTS TO EXISTING SHAREHOLDERS
    * SAYS PLANNED SHARE ISSUE IN THE AMOUNT OF APPROXIMATELY
SEK 1.2
BILLION
    * SAYS LARGER SHAREHOLDERS ACTR HOLDING AB AND ACTOR SCA,
CONTROLLED BY KKR AND TRITON AND REPRESENTING APPROXIMATELY 50.1
PER CENT OF TOTAL NUMBER OF SHARES AND VOTES IN AMBEA, INTEND TO
VOTE IN FAVOUR OF RIGHTS ISSUE AT A GENERAL MEETING AND TO
SUBSCRIBE FOR THEIR RESPECTIVE PRO-RATA SHARES IN RIGHTS ISSUE
    * SAYS ACQUISITION IS EXPECTED TO GENERATE BOTH DIRECT COST
SYNERGIES AND OPPORTUNITIES FOR OPERATIONAL IMPROVEMENTS
    * SAYS EXPECTED DIRECT COST SYNERGIES AMOUNT TO SEK 90
MILLION
ANNUALLY, OF WHICH HALF ARE EXPECTED TO BE REALISED IN 2019 AND
REMAINDER IN 2020
    * SAYS IDENTIFIED OPERATIONAL IMPROVEMENTS AMOUNT TO SEK 30
MILLION, WHICH ARE EXPECTED TO BE ACHIEVED IN 2020
    * SAYS FINANCIAL TARGETS REMAIN UNCHANGED, BUT THESE WILL
ONLY BE
ACHIEVED AFTER INTEGRATION AND SYNERGIES HAVE BEEN FULLY
IMPLEMENTED

Source text for Eikon:  ID:nWkr36fCry 
Further company coverage:  AMBEA.ST 

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