Brief: Electra Gruppen And Elon Group Merge

Elon AB (publ)

07/12/2021 07:34

Dec 7 (Reuters) - Electra Gruppen AB (publ)  ELEC.ST :
    * REG-ELECTRA GRUPPEN AND ELON GROUP MERGE
    * ELON GROUP HOLDING WILL BE LARGEST SHAREHOLDER IN
COMBINEDGROUP
AND OWN 65 PERCENT OF SHARES AND VOTES
    * COMBINED GROUP WILL HAVE NET SALESIN EXCESS OF SEK 6
BILLION AND
OFFER PRODUCTS AND SERVICES THROUGHMORE THAN900 STORES
    * COMPLETION IS EXPECTED DURING FIRST HALF OF 2022.
    * LOWER COST BASE FOR COMBINED GROUP IS PRELIMINARY EXPECTED
TO
DECREASE BY SEK 50 MILLION, TO BE ACHIEVED GRADUALLY OVER FIVE
YEARS
    * MERGER WILL BE COMPLETED BY ELECTRA ACQUIRING ALL SHARES
IN ELON
IN EXCHANGE FOR 9,659,223 NEWLY ISSUED ELECTRA SHARES
    * VALUE OF ELECTRA SHARES ISSUED AMOUNTS TO APPROXIMATELY
SEK 628
MILLION.
    * ELECTRA'S SHAREHOLDERS WILL HOLD 35 PER CENT OF SHARES AND
VOTES
IN COMBINED GROUP AFTER FULL DILUTION
    * ELON GROUP HOLDING 65 PER CENT OF SHARES AND VOTES.
    * ELON GROUP HOLDING WILL BECOME LARGEST SHAREHOLDER IN
COMBINED
GROUP.
    * ELON GROUP HOLDING HAS BEEN GRANTED AN EXEMPTION FROM
MANDATORY
BID OBLIGATION FROM SWEDISH SECURITIES COUNCIL.
    * WILL PROPOSE THAT A GENERAL MEETING IN ELECTRA RESOLVES ON
AN
EXTRA DIVIDEND OF SEK 15.6 MILLION TO ELECTRA'S SHAREHOLDER
    * TO PROPOSE THAT A GENERAL MEETING IN ELECTRA RESOLVES ON
AN
INCENTIVE PROGRAM FOR KEY EMPLOYEES IN COMBINED GROUP.
    * MANAGEMENT TEAM WILL INCLUDE STEFAN LEBROT (PRESIDENT AND
CEO),
ANNELI SJÖSTEDT (DEPUTY CEO) AND PETER BRODÉN (CFO).
    * COMBINED COMPANY WILL OPERATE UNDER COMPANY NAME ELON AB
(PUBL)
FOLLOWING TRANSACTION COMPLETION
    * COMBINED GROUP WILL HAVE HEADQUARTERS IN STOCKHOLM AS WELL
AS
OPERATIONS IN ÖREBRO AND KALMAR.
    * COMBINED NET SALES AND EBITDA FOR TWELVE-MONTH PERIOD
ENDED ON
30 SEPTEMBER ARE ESTIMATED AT SEK 6,198 MILLION AND SEK 200
MILLION

Source text for Eikon:  ID:nGNE6GDrQX 
Further company coverage:  ELEC.ST 

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