Brief: Humble Enters Into New LoI, Terminates Negotiations With Previous Interested Party
01/12/2023 11:22
Dec 1 (Reuters) - Humble Group AB HUMBLE.ST :
* HUMBLE ENTERS INTO A NEW LETTER OF INTENT REGARDING SALE
OF
PROPERTIES AND TERMINATES THE NEGOTIATIONS WITH THE PREVIOUS
INTERESTED PARTY
* PRELIMINARY AGREED VALUE OF PROPERTIES AMOUNTS TO
APPROXIMATELY
SEK 277 MILLION, EXCLUDING EARN OUTS
* IN ADDITION TO PURCHASE PRICE, HUMBLE AND INTERESTED PARTY
INTEND TO SHARE VALUE INCREASE ATTRIBUTABLE TO TWO OF PROPERTIES
AFTER DEDUCTION OF COSTS IN RELATION TO CONSTRUCTION OF TWO NEW
FACTORIES, WHICH CONSTITUTES EARN OUTS.
* FOLLOWING COMPLETION OF TRANSACTION, HUMBLE WILL CONTINUE
TO OWN
THREE PROPERTIES AND WILL HOLD BUY OPTIONS WITH ADVANTAGEOUS
TERMS FOR ADDITIONAL TWO PROPERTIES
* COMPANY IS EVALUATING POSSIBILITIES TO ALSO DIVEST THESE
PROPERTIES IN FUTURE
* PARTIES' INTENTION IS TO COMPLETE TRANSACTION IN TWO
PHASES.
* FIRST PHASE COMPRISES THREE PROPERTIES EQUAL TO AN AGREED
VALUE
OF APPROXIMATELY SEK 141 MILLION
* SECOND PHASE COMPRISES REMAINING SEVEN PROPERTIES EQUAL TO
AN
AGREED VALUE OF APPROXIMATELY SEK 136 MILLION
* TRANSACTION WOULD IMPLY THAT HUMBLE'S NET DEBT, AFTER
DEDUCTION
FOR HUMBLE'S SHARE OF DEFERRED TAX OF APPROXIMATELY SEK 7
MILLION, WILL DECREASE BY APPROXIMATELY 270 MILLION
* TRANSACTION IS CARRIED OUT TO AGREED VALUE OF
APPROXIMATELY SEK
270 MILLION
* SALE PROFIT WOULD AMOUNT TO SEK 141 MILLION
* TRANSACTION IS EXPECTED TO AFFECT GROUP'S EARNINGS AFTER
TAX
WITH APPROXIMATELY SEK 38 MILLION
* PARTIES INTEND TO ENTER INTO A BINDING TRANSFER AGREEMENT
REGARDING TRANSACTION DURING Q4 OF 2023
* AFTER COMPLETION OF TRANSACTION, HUMBLE'S EBITA WILL
DECREASE BY
APPROXIMATELY SEK -11 MILLION
* NET EFFECT FOR HUMBLE'S LIQUIDITY AND AFTER AMORTIZATION
OF
PROPERTY-RELATED LOANS IS EXPECTED TO AMOUNT TO APPROXIMATELY
SEK 204 MILLION
Source text for Eikon: ID:nWkr6jsdvj
Further company coverage: HUMBLE.ST
(Gdansk Newsroom)
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