Elmera Group ASA

Regulatory Filings • Jun 27, 2019

Fjordkraft Holding ASA: Signed agreement to acquire Vesterålskraft Strøm AS

Fjordkraft Holding ASA: Signed agreement to acquire Vesterålskraft Strøm AS

Fjordkraft (OSE ticker “FKRAFT”) has entered into a share purchase agreement with Vesterålskraft AS to purchase 100% of the shares of Vesterålskraft Strøm AS.

Vesterålskraft Strøm AS has about 8,600 electricity deliveries and estimated underlying net revenue and EBIT for 2018 was 10 NOKm and 3 NOKm, respectively. The agreed purchase price is 26.5 NOKm, which represents an enterprise value of 27.3 NOKm, subject to certain price adjustment mechanisms as agreed between the parties. The transaction is expected to be completed on 1 July 2019 and supports Fjordkraft's strategy as acting as a consolidator in the electricity market.

The purchase price will be allocated between the customer portfolio and the regional office and sales organisation, and will be disclosed in the second quarter 2019 presentation.

The acquisition is financed through available cash. The Seller has agreed with Fjordkraft that it will use the purchase price from the transaction to purchase 621,341 shares in Fjordkraft Holding ASA. The number of shares is based on the agreed purchase price in the transaction divided by the volume-weighted average price for the shares in Fjordkraft Holding ASA during the period of 12 June 2019 until 26 June 2019, i.e. NOK 42.6092. ABG Sundal Collier will be assisting the Seller with such share purchase following completion of the transaction.

- Vesterålskraft Strøm AS has been one of our Alliance partners for the last ten years, and we are very happy to benefit from our long-term relationship through this acquisition. On top of their customer portfolio, we acquire a regional office and sales organisation in the northern part of Norway, enabling us to grow our market share in an unchartered territory for us, CEO Rolf Barmen explains.

- Through their industrial ownership in Fjordkraft, Vesterålskraft is able to take part in the value creation of a larger and more profitable company, while staying exposed to the retail part of the value chain, Barmen adds.

PwC has acted as financial advisor and Advokatfirmaet Schjødt AS has acted as legal advisor to Fjordkraft.

For queries, please contact: Morten A. W. Opdal, Head of Controlling and Investor Relations, +47 970 62 526