Sdiptech AB ser. B
Sdiptech AB: Sdiptech AB (publ) sells back AVA Monitoring AB
18 February 2019, 15:00.
Sdiptech AB (publ) sells back AVA Monitoring AB
Sdiptech has today allowed the subsidiary AVA Monitoring to return to its
original owners. The transaction entails a minor capital gain for Sdiptech,
while more room for new investments is freed up.
On 5 July 2017, Sdiptech acquired the shares in the company AVA Monitoring
AB, which develops and sells measurement systems for monitoring vibrations
and noise in connection with infrastructure projects.
The acquisition model that was applied was largely based on outcomes in
future earnings. Following the completion of the transaction, the company
showed an extraordinary earnings trend over a short period of time, meaning
that the performance-based acquisition model was not relevant in relation
to the assumed long-term trend.
In the situation that has arisen, the parties have been in negotiations for
some time with the intention of finding a solution. The parties have now
agreed that the former owners, Malte i Sverige Holding AB, will re-enter as
the 100 percent shareholder in AVA Monitoring effective 18 February 2019.
Sdiptechs deliberations have paid particular consideration to AVA
Monitorings industrial focus, whereby its customers operate predominantly
in construction and building technologies. AVA Monitoring will now continue
to operate under the same management, and Sdiptech wishes the new (and
former) owners and the companys personnel the best possible development.
The reversal of the acquisition will be effectuated by Sdiptech receiving a
refund of the cash purchase consideration paid on the acquisition of AVA
Monitoring in July 2017, approx. SEK 21.5 million. Sdiptechs outstanding
liabilities to the sellers of AVA Monitoring, totalling SEK 72 million are
to be written off, including the reserved liability for future payment of
the conditional purchase consideration. The booked goodwill asset of SEK 71
million that arose in connection with the acquisition is also to be written
off. Finally, a cash payment of approximately SEK 2 million is to be
received. Following deductions for the accumulated equity from which
Sdiptech has benefited since the acquisition, as well as for other costs in
connection with the reversal, the net effect for Sdiptech will be a gain of
approximately SEK 3 million. The reversal also entails a positive annual
return of about 12 percent on the capital tied up in the acquisition.
According to Sdiptechs assessment, AVA Monitoring, which has belonged to
the Niched Products and Services business area, generates long-term sales
providing SEK 5 10 million in net profit annually. Through the reversal,
additional scope for acquisitions is opened up and the Board of Directors
makes the assessment that new acquisitions will replace AVA Monitorings
contribution to earnings.
For additional information, please contact:
Jakob Holm, CEO, +46 761 61 21 91, firstname.lastname@example.org
Bengt Lejdström, CFO, +46 702 74 22 00, email@example.com
Sdiptechs Class B ordinary share is traded under the ticker SDIP B with
ISIN code SE0003756758.
Sdiptechs preference shares are traded under the ticker SDIP PREF with
ISIN code SE0006758348.
Sdiptechs Certified Adviser on the Nasdaq First North Stockholm exchange
is Erik Penser Bank, +468-463 83 00, firstname.lastname@example.org
. Further information can be found on the companys website:
Sdiptech AB is a technology group focusing mainly on infrastructure
segments that are critical for well-functioning communities and for
welfare, such as water & sanitation, electricity & automation, energy
efficiency & air climate and transport. As part of our offering in
metropolitan areas, we also offer niched technical services for properties.
Sdiptech generates annual sales of approximately SEK 1,500 million and is
based in Stockholm.
Sdiptech AB (publ) is required to disclose this information pursuant to EU
Market Use Regulation 596/2014. The information was provided by the above
contact persons for publication on 18 February 2019 at 15:00 CET.
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