AF Gruppen — M&A Activity 2015

Jun 4, 2015

AF implements purchase of Målselv Maskin & Transport AS

AF implements purchase of Målselv Maskin & Transport AS

Reference is made to the stock exchange announcement

dated 16 April 2015, where it was reported that AF

Gruppen had signed a letter of intent regarding

Målselv Maskin & Transport AS.

AF Gruppen (AFG) has today entered into a final

agreement to acquire 70 per cent of the shares in

Målselv Maskin & Transport AS, and has

simultaneously implemented the acquisition of these

shares. These shares have been acquired from 9 of

the company's existing shareholders. These

shareholders will continue to own the remaining 30

per cent of the shares in the company.

Målselv Maskin & Transport AS is the largest machine

contractor in Troms county. The company has 50

employees and had a turnover of NOK 225 million in

Enterprise Value (100 %) for Målselv Maskin &

Transport AS, inclusive ownership in associates and

sites, is estimated at NOK 155 million. The

settlement for 70 % of the shares will consist of

400,538 shares in AF Gruppen ASA at a share price of

NOK 111.60 per share and cash. A part of the cash

settlement will be granted as a sellers' credit

through to 2018. Guarantees have been issued in

respect of future performance.

The cash payment that forms part of the settlement

is financed through AF Gruppen's current liquid

holdings.

"We are very happy to have Målselv Maskin &

Transport on our team. The company has delivered

good results over time and has a culture and core

values that coincide with ours. The acquisition is

in accordance with our strategy of growing

profitably in our core markets, and this agreement

gives us good opportunities to participate in a

growing civil engineering market in the northernmost

part of the country," says Pål Egil Rønn, CEO of AF

Gruppen.

For further details, please contact:

Pål Egil Rønn, CEO. Telephone +47 90 95 77 13

Sverre Hærem, CFO. Telephone + 47 95 24 51 67