Brief: Bergs To Sell Its Swedish Sawmills

Bergs Timber AB (publ)

17/06/2020 13:05

June 17 (Reuters) - Bergs Timber AB (publ)  BRGb.ST :
    * BERGS TO SELL ITS SWEDISH SAWMILLS
    * SIGNED AN AGREEMENT WITH VIDA AKTIEBOLAG ON SALE OF
BERGS'S
SWEDISH SAWMILL BUSINESS
    * TRANSACTION ENCOMPASSES SAWMILLS IN ORREFORS, VIMMERBY AND
MÖRLUNDA, AND IS SCHEDULED TO BE CONCLUDED ON 1 SEPTEMBER 2020
    * TOTAL PURCHASE CONSIDERATION FOR OPERATIONS, INCLUDING
WORKING
CAPITAL INVOLVED, IS ESTIMATED AT APPROXIMATELY SEK 400 MILLION,
OF WHICH SEK 303 MILLION PERTAINS TO FIXED ASSETS
    * IN CONJUNCTION WITH TRANSACTION, AN ADDITIONAL SEK 150
MILLION
IN WORKING CAPITAL IS EXPECTED TO BE FREED UP
    * AS A RESULT OF SALE, BERGS WILL RECOGNISE A CAPITAL GAIN
BEFORE
TAX OF APPROXIMATELY SEK 100 MILLION.
    * TRANSACTION, TAKEN TOGETHER WITH LIQUIDATION OF OTHER
WORKING
CAPITAL, MEANS THAT BERGS'S FINANCIAL NET DEBT-WHICH AT END OF
Q1 OF 2020 TOTALLED SEK 695 MILLION-WILL BE LIMITED TO
APPROXIMATELY SEK 150 MILLION, CORRESPONDING TO A NET
DEBT/EQUITY RATIO OF APPROXIMATELY 15 PER CENT
    * SALE IS CONDITIONAL UPON VIDA OBTAINING APPROVAL FROM
RELEVANT
COMPETITION AUTHORITIES.

Source text for Eikon:  ID:nWkrbDvXw3 
Further company coverage:  BRGb.ST 

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