Brief: Bergs Timber Has Signed An Agreement To Acquire Norvik's Timber Operations In The Baltics And The United Kingdom

Bergs Timber AB (publ)

17/04/2018 15:33

April 17 (Reuters) - Bergs Timber AB (publ)  BRGb.ST :
    * BERGS TIMBER HAS SIGNED AN AGREEMENT TO ACQUIRE NORVIK'S TIMBER OPERATIONS IN THE BALTICS
AND
THE UNITED KINGDOM
    * PURCHASE PRICE WILL BE MADE UP OF 170 MILLION NEWLY ISSUED SHARES IN BERGS TIMBER AS WELL
AS A
CASH PAYMENT OF SEK 270 MILLION
    * CASH PAYMENT WILL BE MADE WITH SEK 100 MILLION IN CONNECTION WITH COMPLETION OF
ACQUISITION
    * NORVIK IS ENTITLED TO A PERFORMANCE-BASED EARN-OUT, WHICH IN TOTAL MAY AMOUNT UP TO SEK 40
MILLION
    * SUBJECT TO COMPLETION OF ACQUISITION, BOARD OF DIRECTORS OF BERGS TIMBER HAS ADOPTED
REVISED
FINANCIAL TARGETS FOR GROUP
    * EBITDA MARGIN SHALL, OVER A BUSINESS CYCLE, EXCEED 7 PERCENT,
    * DIVIDENDS SHALL UNDER NORMAL CONDITIONS AMOUNT TO 25 - 40 PERCENT OF COMPANY'S PROFIT
AFTER TAX.
    * GOAL OF ANNUAL GROWTH, OVER A BUSINESS CYCLE, SHALL BE 2 PERCENT ORGANICALLY AND 5 - 10
PERCENT
INCLUDING ACQUISITIONS

Source text for Eikon:  ID:nWkr3JTk51 
Further company coverage:  BRGb.ST 

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