Small Swedish industrial firm Duroc bets on big buy, shares soar

Duroc AB

13/01/2017 10:12

STOCKHOLM, Jan 13 (Reuters) - Swedish small-cap industrial 
firm Duroc  DURCb.ST  said on Friday it was buying the far 
larger International Fibres Group from one of its largest owners 
by issuing new shares, sending Duroc shares sharply higher.   
    * Acquires International Fibres Group AB (IFG) from Peter 
Gyllenhammar AB (PGAB). 
    * Acquisition is paid in full with 31,671,100 newly issued 
shares in Duroc. 
    * PGAB currently owns around 18 percent of Duroc shares, and 
will through the deal initially own around 85 percent of shares 
and votes in the expanded Duroc. 
    * Duroc's current largest owner AB Traction  TRACb.ST  is 
positive to the proposal and will vote in favour of it at the 
EGM on Feb. 15. 
    * In connection with the deal Traction plans to buy 
1,825,000 Duroc shares from PGAB.  
    * IFG makes around 110,000 tonnes fibre and yarn annually at 
its subsidiaries in the Unites States, United Kingdom, Austria 
and Belgium, generating sales of around 1.9 billion Swedish 
crowns ($213 million), with a pretax profit of around 90 million 
crowns.  
    * With the acquisition, Duroc's annual sales will rise to 
around 2.3 billion crowns. 
    * Duroc shares rise 79 percent at 1001 GMT. 
    * IFG's fibres are used for many different applications by 
industrial buyers within for example the car industry and the 
textile industry.($1 = 8.9188 Swedish crowns) 
 
 
 (Reporting by Johannes Hellstrom; editing by Niklas Pollard) 
 ((johannes.hellstrom@thomsonreuters.com; +4687001008; Reuters 
Messaging: johannes.hellstrom.reuters.com@reuters.net)) 
 
Keywords: DUROC ACQUISITION/