AF Gruppen to acquire 70 per cent of the shares in Kanonaden Entrepenad AB

OSLO, 09-Feb-2017 — /EuropaWire/ — AF Gruppen (AFG) has today entered into a final agreement to acquire 70 per cent of the shares in Kanonaden Entrepenad AB, and has simultaneously implemented the acquisition of these shares.

Key personell in Kanonaden Entrepenad AB will continue to own the remaining 30 per cent of the shares in the company.

Kanonaden Entrepenad AB is a Swedish civil engineering company established in 1983 with headquarters in Nässjö in Småland. The company takes on assignments in groundworks, water and drainage, concrete works, district heating, cable laying, windpower and road construction. The company operates in southern Sweden, including Stockholm and Gothenburg. In 2016 the company and its subsidiaries saw turnover of SEK 708 million, and the company has 188 employees.
Enterprise value (100 per cent) for Kanonaden Entrepenad AB is valued at SEK 260 million. The settlement for 70 per cent of the shares will consist of 318,766 shares in AF Gruppen ASA at a share price of NOK 153.40 per share and a cash payment today of SEK 131 million.
The cash payment that forms part of the settlement is financed through AF Gruppen’s current liquid holdings.

“We are very happy to have Kanonaden on our team. The company has delivered good results over time and has a culture and core values that coincide with ours. This acquisition is in accordance with our strategy towards 2020, which implies a growth initiative in Sweden. This agreement gives us good opportunities to participate in a growing Swedish civil engineering market,” says Morten Grongstad, CEO of AF Gruppen.

Reference is made to the stock exchange announcement dated 21 October 2016, where it was reported that AF Gruppen had signed a letter of intent regarding Kanonaden Entrepenad AB.

For further information:
Morten Grongstad, CEO. Tel: +47 99 15 39 05Arild Moe, EVP Civil Engineering. Tel. +47 91 37 62 65Sverre Hærem, CFO. Telephone + 47 95 24 51 67