Kinnevik's agreement comprises 2,148,710 class A shares and 2,370,520 class B shares in Invik, representing 14.5% of the capital and 25.3% of the votes. When the sale is completed, Kinnevik will not own any shares or other financial instruments in Invik. The sale will have a positive impact on Kinnevik's result of SEK 251 million in the second quarter of 2007, corresponding to the difference between the market value of the shares on 31 March, SEK 838 million, and the sale proceeds. Following completion of the sale, Kinnevik's net debt will be reduced by an amount equal to the sale proceeds.
Invik was spun off to Kinnevik's shareholders on 1 September 2005 and the closing price for the class B share on the first trading day amounted to SEK 66. The total return, including dividends, will therefore amount to 258% for those Kinnevik shareholders that received class B shares in 2005 and now accept Milestone's offer. The sale price of SEK 230 per class B share represents a premium of 35.3% compared to Invik's average share price over the last three months and 23.0% compared to the latest available closing price on 25 April. Invik's class A share is not listed.
Kinnevik's agreement with Milestone includes that Milestone already today announces a voluntary offer for all outstanding shares and other financial instruments in Invik and hence all Invik's shareholders are offered to sell their shares at the same price as Kinnevik. If Milestone were to increase the price in the public offer to other Invik shareholders, the agreement entitles Kinnevik to be compensated for the difference. In the event that Milestone sells the shares in Invik acquired from Kinnevik in a competing offer, Kinnevik has the right to receive 80% of Milestone's gain in such a transaction.
The sale is conditional on Milestone obtaining approval from relevant financial supervisory authorities and is expected to be completed in June 2007.
Mia Brunell, Chief Executive Officer of Investment AB Kinnevik, comments on the transaction: "Invik is a well-managed and successful company. In the consolidation taking place in the Nordic financial markets, we have decided to sell our shares at a price level which we deem attractive for us and Invik's other shareholders. The sale gives Kinnevik increased financial flexibility to invest in new growth markets."
Karl Wernersson, Chairman of Milestone, said: "We are delighted to begin a new chapter in the development of the Milestone group. Invik is a major strategic step in our expansion outside of Iceland, and brings some of the best talent in Nordic financial services with it. We believe the acquisition of Invik will fuel our expansion within the Nordic region and position Milestone as a growing participant in the Nordic financial services arena."
JPMorgan is acting as financial adviser to Kinnevik in relation to the transaction.
Mia Brunell, Chief Executive Officer +46 (0) 8 562 000 00
Henrik Persson, Investor relations +46 (0) 8 562 000 87
Investment AB Kinnevik's objective is to increase shareholder value, primarily through net asset value growth. The Parent Company manages a portfolio of long-term investments in a number of listed companies such as Tele2, Modern Times Group MTG, Millicom International Cellular, Metro International and Transcom WorldWide. Kinnevik plays an active role on the Boards of its listed holdings.
The Company's subsidiaries are principally active in cartonboard and paper production through Korsnäs, and farming through Mellersta Sveriges Lantbruk.
Investment AB Kinnevik's class A and class B shares are listed on the Stockholm Stock Exchange's Nordic list for large-cap companies within the financial and real estate sector. The ticker codes are KINV A and KINV B.