Brief: Vestum Divests, Redeems Bond, Updates Financial Targets

Vestum AB (publ)

03/04/2023 17:17

Apr 3 (Reuters) - Vestum carries out strategic divestment, announces its
intention to redeem bond and updates the group's financial targets regarding
profitability and capital structure.
* To divest a portfolio of companies that were previously part of the Lakers
Group to Equip Capital
* Purchase price amounts to SEK 326.5 million on a cash and debt-free basis
and will be paid in cash
* Intends to fully redeem the secured bond of NOK 950 million issued by
Vestum's group company Lakers Group AB (publ)
* Intention is to settle the bond with funds from the purchase price and bank
debt from Vestum's existing banks
* Target in the medium term is to generate an average annual growth in EBITA
per share of at least 15.0 percent
* Profitability target is raised from achieving an EBITA margin of at least
10.0 percent to in the medium term achieving an EBITA margin of at least 12.0
percent
* Financial target regarding capital structure is lowered from a financial net
debt in relation to EBITDA of 2.5-3.5x to a financial net debt in relation to
EBITDA of maximum 2.5x