Information regarding purchase of shares previously owned by Nordstjernan.
Viken, Sweden - May 01, 2012
The share purchase executed in spring last year increased the Välinge Invest shareholding in the Välinge group from 30% to 60%, eliminated investments restrictions and facilitated a floating of Välinge Flooring Technology AB on the stock market.
Nordstjernan announced in its 2011 accounts that they are pleased with the investment in Välinge. They acquired the Välinge shares from Välinge Invest AB during 2002-2004 for 153 MSEK (17,2 MEUR) , received dividends of 463 MSEK (52,1 MEUR) and sold back their shares in April 2011 for 600 MSEK (67,5 MEUR). Nordstjernan made a profit of 910 MSEK (102,4 MEUR), which corresponds to a total return on investment of 594% or an annual return of 27%.
Välinge is pleased that their owners are well rewarded. Nordstjernan acquired their shares based on a company value of 300 MSEK (33,7 MEUR) and made an exit based on a company value of 2.000 MSEK (225 MEUR). However, in spite of the high return that Nordstjernan received, their exit was based on disputes between the owners, which were settled in connection with the sale of the shares.
"Välinge Invest AB is very pleased with the share purchase that increased the shareholding in the Välinge group from 30% to a majority of 60%, created a freedom to make flooring related investments in Välinge Invest and provided the possibilities to float the mother company Välinge Flooring Technology AB on the stock market. Due to special provisions in the shareholders agreement with Nordstjernan, Välinge Invest was prior to the share purchase not allowed to make investments in flooring related activities where we have our basic knowledge and experience and the major part of our investments was therefore in properties. This will change now
" says Darko Pervan CEO Välinge invest AB.
The market value of the Välinge group (Välinge International AB) was by three investment banks in 2010 estimated to about 4.000 MSEK (449,9 MEUR). The value was based on a planned IPO that unfortunately could not be materialized due to different opinions between the owners. The Välinge profits have since then improved considerably and the patent portfolio has been strengthened with several new patents related to 5G technology, powder technology, Nano Technology, wood flooring technology and digital printing.
Välinge Invest initiated immediately after the share purchase in may 2011 its own R&D. An IP base of 10 new patent families has already been developed. Välinge Invest anticipates that its own IP base in some years may match the strong IP bases of 1000 patents and 4.000 applications that its 60% owned subsidiary – the Välinge group- has today.
Välinge Invest is planning an IPO of Välinge Flooring technology – the mother company that owns 60% of the Välinge group - and anticipates that such an IPO may be an interesting investment for investors that want to broaden their investments into IP and R&D where Välinge has a world leading position. The objectives of Välinge Invest is to extend its flooring activities outside the Välinge Group where the Krono companies still hold a 40% minority ownership. The intension is that Välinge Innovation will sublicense flooring related patents owned by Välinge Invest.