Brief: Gränges Signs Agreement To Acquire Aluminium Konin

Granges AB

28/11/2019 06:35

Nov 28 (Reuters) - Granges AB  GRANG.ST :
    * GRÄNGES HAS SIGNED AN AGREEMENT TO ACQUIRE ALUMINIUM KONIN
    * TO ACQUIRE ALUMINIUM KONIN FOR SEK 2.3 BILLION ON A CASH
AND
DEBT FREE BASIS
    * ENTERPRISE VALUE, CORRESPONDING TO AN EV/EBITDA MULTIPLE
OF 6.9X
LTM (LAST TWELVE MONTHS) SEPTEMBER 2019 EBITDA
    * TRANSACTION IS EXPECTED TO BE EPS ACCRETIVE WITHIN TWELVE
MONTHS
FROM ITS COMPLETION.
    * WILL COMPLETE AN EXPANSION PROGRAM INITIATED BY SELLER, OF
SEK
1.1 BILLION OVER THREE YEARS
    * DANSKE BANK, NORDEA BANK AND SVENSKA HANDELSBANKEN ARE
PROVIDING
A SEK 2.3 BILLION BRIDGE LOAN FACILITY WITH A TIME TO MATURITY
OF 18 MONTHS
    * TO UNDERTAKE A NEW SHARE ISSUE WITH PREFERENTIAL RIGHTS
FOR
EXISTING SHAREHOLDERS TO A TOTAL AMOUNT OF APPROXIMATELY SEK 2
BILLION
    * TRANSACTION IS NOT CONDITIONAL UPON RIGHTS ISSUE
    * ACQUIRED BUSINESS WILL BE A WHOLLY OWNED SUBSIDIARY OF
GRÄNGES
AB.
    * FOURTH SWEDISH NATIONAL PENSION FUND, REPRESENTING 9.5 %
COMMITTED TO SUBSCRIBE FOR ITS PRO-RATA SHARE OF RIGHTS ISSUE
    * SHAREHOLDERS HOLDING IN TOTAL 24.6 PER CENT OF SHARES AND
VOTES
IN GRÄNGES HAVE EXPRESSED THEIR INTENTION TO SUBSCRIBE
    * GRÄNGES' SALES VOLUME, INCLUDING ACQUIRED BUSINESS, WOULD
BE 456
KTONNES FOR LTM SEPTEMBER 2019
    * POST COMPLETION OF TRANSACTION AND RIGHTS ISSUE, ' NET
DEBT IS
EXPECTED TO BE ABOUT SEK 4.3 BILLION OR 2.6 TIMES ADJUSTED
EBITDA.
    * CLOSING IS EXPECTED IN Q2 OF 2020.
    * GRÄNGES HAS SECURED BANK FINANCING TO FINANCE TRANSACTION
    * BOARD OF DIRECTORS OF GRÄNGES INTENDS TO PROPOSE THAT AN
EXTRAORDINARY GENERAL MEETING AUTHORIZES BOARD OF DIRECTORS TO
ISSUE NEW SHARES THROUGH RIGHTS ISSUE
    * WILL ACQUIRE ALL OUTSTANDING SHARES OF COMPANY IMPEXMETAL
S.A.
    * APPROXIMATELY SEK 1.5 BILLION OF RIGHTS ISSUE PROCEEDS
WILL BE
USED TO FINANCE PART OF TRANSACTION
    * ASSETS OF IMPEXMETAL WILL CONSIST SOLELY OF OPERATIONS OF
ALUMINIUM KONIN.
    * DEMERGER IS EXPECTED TO BE COMPLETED DURING Q1 OF 2020.
    * APPROXIMATELY SEK 0.5 BILLION WILL BE USED FOR FUTURE
GROWTH
INVESTMENTS IN LINE WITH GRÄNGES' STRATEGY
    * RIGHTS ISSUE IS EXPECTED TO BE CARRIED OUT IN Q2 OF 2020.
    * ACQUIRED BUSINESS WILL BE A WHOLLY OWNED SUBSIDIARY OF
GRÄNGES
AB.
    * GRÄNGES' SALES VOLUME, INCLUDING ACQUIRED BUSINESS, WOULD
BE 456
KTONNES FOR LTM SEPTEMBER 2019.

Source text for Eikon:  ID:nWkr376wSn 
Further company coverage:  GRANG.ST 

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