Norske Skog ASA

Regulatory Filings • Sep 23, 2019

Norske Skog intends to launch initial public offering and listing on Oslo Stock Exchange

Norske Skog intends to launch initial public offering and listing on Oslo Stock Exchange

NOT FOR DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OF AMERICA AND THE DISTRICT OF COLUMBIA) (THE “UNITED STATES”), AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Norske Skog intends to launch initial public offering and listing on Oslo Stock Exchange (Oslo Børs)

Oslo, 23 September 2019: Norske Skog ASA (“Norske Skog” or the “Company”) today announces its intention to launch an initial public offering of its shares and to apply for a listing on Oslo Børs (the “IPO”).

Norske Skog is a major news and magazine paper producer with ~70 years industry experience, operating in the substantial ~40m tonnes p.a. publication paper industry. Global footprint with seven publication paper mills with a total capacity of ~2.6m tonnes p.a. of which ~1.9m tonnes in Europe and ~0.7m tonnes in Australasia. This ensures sustainable competitive strengths such as economies of scale, production flexibility, cost optimisation and proximity to customers in important markets. Diversified customer base with longstanding and globally recognised publishers, commercial printers and retailers worldwide. Attractive growth projects within bio energy, bio chemical products and fibre products, including possibilities to convert paper machines to production of packaging material.

For the twelve-month period ending 30 June 2019, the Company had revenue and EBITDA of NOK ~13.1 billion and NOK ~1.4 billion, respectively. Following a successful bond issue of EUR 125 million in June 2019, Norske Skog had a net leverage ratio of 0.8x EBITDA as of 30 June 2019. Norske Skog has a strong cash conversion and is committed to paying a high and attractive dividend to its shareholders following the IPO.

Norske Skog is headquartered in Oslo, Norway and is currently 100% owned by funds managed by Oceanwood Capital Management (“Oceanwood”).

“Norske Skog is committed to creating value for its stakeholders in a responsible way while maintaining focus on the environment and a sustainable use of natural resources. We are proud of the position that we have developed for Norske Skog over the recent years and we look forward to inviting new shareholders to participate in the company's future development through the contemplated IPO”, says Mr Sven Ombudstvedt, President and CEO of Norske Skog.

“Oceanwood is very excited to continue the process of bringing Norske Skog back to the capital markets following the successful bond issuance in June 2019. The management and employees have done a tremendous job since Oceanwood acquired the company, and we now welcome domestic and international investors to take part in the journey ahead. We share the ambition to see Norske Skog succeed and realise the potential we believe is inherent in the operation as it continues to transform and grow”, says Mr John Chiang, Senior Partner and Portfolio Advisor of Oceanwood.

Norske Skog has a clear ambition to maintain its position within the publication paper market by launching new paper products in line with customer expectation. In addition, the Company will pay strong attention to operational efficiency, capacity utilisation and customer satisfaction to ensure healthy margins. Norske Skog has a clear growth strategy in place, targeting further expansion into new revenue streams including bio energy projects, bio chemical products and fibre products.

The IPO will comprise a public offering to investors in Norway and a private placement to certain institutional and other professional investors internationally, in which the current sole shareholder in the Company, NS Norway Holding AS, a subsidiary of funds managed by Oceanwood, intends to reduce its ownership in the Company.

Subject to receiving the relevant approvals from Oslo Børs as well as the prevailing equity capital market conditions, the IPO is expected to price in Q4 2019.

ABG Sundal Collier ASA and DNB Markets, a part of DNB Bank ASA, are acting as joint global coordinators and joint bookrunners, and Carnegie AS is acting as joint bookrunner, in connection with the IPO (collectively, the “Managers”).

Advokatfirmaet Thommessen AS is acting as legal counsel to Norske Skog and Oceanwood. Wikborg Rein Advokatfirma AS is acting as legal counsel to the Managers.

Please see the attachment at www.newsweb.no for further information and the full release.