Sjælsø Gruppen A/S today announced the groups purchase of all shares in Ikast Byggeindustri A/S (IBI), one of Denmarks leading project developers within the retail sector. IBI holds a strong position in the Nordic market where the company has offices in Stockholm, Oslo and Helsingfors. IBI has also recently initiated an expansion programme in the German, French, Spanish and Portuguese markets.
Owned by its management until now, IBI (www.ibi.dk) employs a staff of 82 and expects to achieve a turnover of approx. €120,72 million for the 2005/06 financial year (July 1 - June 30) with profits of approximately €12,07 million, based on project contributions of €23,47 milion. For the next few years, the company expects to record 10 - 20% growth in turnover as well as in earnings.
The acquisition of IBI will considerably strengthen Sjælsø Gruppens activities, said Ib Henrik Rønje, Sjælsø Gruppens CEO. Both companies are knowledge-based businesses with strong pipelines and focus on project and financial management. This provides a solid platform for future growth and value creation for our shareholders. The purchase of IBI means that Sjælsø Gruppen will now become a full property development company with a sound base for international expansion, Ib Henrik Rønje stated.
Purchase sum and capital increase
The purchase sum for IBI is €107,31 million in the form of a share issue of 225,909 new shares of €294.97 in Sjælsø Gruppen A/S and a cash payment of €40,64 million. The share price equates to todays closing price for Sjælsø Gruppens shares on the Copenhagen Stock Exchange. The purchase price has partly been determined on the basis of IBIs expected project contribution for the next three years.
As part of the deal, the Board of Directors are acquainted with the fact that some of the sellers have the intention after the release of this stock exchange announcement - to enter into an agreement with SG Nord Holding A/S to resell 108,718 new shares at a price of €315,09.
The Board of Directors intend to allow these deals. Following the new share issue and the expected sale of shares, SG Nord Holding A/S will own 674,233 shares, or 27.13%, of the total increased share capital in Sjælsø Gruppen A/S.
The acquisition of IBI is conditional on the approval by Sjælsø Gruppens shareholders at an Extraordinary General Meeting of the proposed 10% share increase. In consequence, the Group will shortly call an Extraordinary General Meeting.
New opportunities
Sjælsø Gruppens skills within the field of commercial premises and residential property combined with IBIs extensive experience in construction projects in the retail sector can be expected to create substantial advantages in respect of both sales and purchasing. Following the deal, IBI will receive additional resources for its current international expansion programme while Sjælsø Gruppen will be able to exploit IBIs presence in Nordic and selected European markets for residential and commercial projects. The fact that the new corporate structure will also create opportunities for combining all three types of constructionprojects is an added advantage.
IBI and Sjælsø Gruppen each benefit from strong positions within their sectors. Together they will be able to develop a wide range of exciting opportunities, said Bo Olesen, Group Managing Director, IBI. Both companies operate on the basis of strong and healthy foundations and benefit from skilled and committed employees. Based on this, we will be able to come up with interesting solutions and contribute to our mutual continuing growth.
IBI will continue as an independent subsidiary within Sjælsø Gruppen under its current management. The combined group has projects valued at €3,49 billion in the pipeline.
Expectations for the financial years 2006 and 2007
IBI is expected to be included in Sjælsø Gruppens accounts from July 1, 2006 after which date IBIs accounts will be prepared in accordance with Sjælsø Gruppens accounting policies. On the basis of t
