AF Gruppen — M&A Activity 2017

Feb 9, 2017

AF closes Kanonaden Entrepenad AB acquisition

AF closes Kanonaden Entrepenad AB acquisition

Reference is made to the stock exchange announcement

dated 21 October 2016, where it was reported that AF

Gruppen had signed a letter of intent regarding

Kanonaden Entrepenad AB.

AF Gruppen (AFG) has today entered into a final

agreement to acquire 70 per cent of the shares in

Kanonaden Entrepenad AB, and has simultaneously

implemented the acquisition of these shares. Key

personell in Kanonaden Entrepenad AB will continue to

own the remaining 30 per cent of the shares in the

company.

Kanonaden Entrepenad AB is a Swedish civil engineering

company established in 1983 with headquarters in

Nässjö in Småland. The company takes on assignments in

groundworks, water and drainage, concrete works,

district heating, cable laying, windpower and road

construction. The company operates in southern Sweden,

including Stockholm and Gothenburg. In 2016 the

company and its subsidiaries saw turnover of SEK 708

million, and the company has 188 employees.

Enterprise value (100 per cent) for Kanonaden

Entrepenad AB is valued at SEK 260 million. The

settlement for 70 per cent of the shares will consist

of 318,766 shares in AF Gruppen ASA at a share price

of NOK 153.40 per share and a cash payment today of

SEK 131 million.

The cash payment that forms part of the settlement is

financed through AF Gruppen's current liquid holdings.

"We are very happy to have Kanonaden on our team. The

company has delivered good results over time and has a

culture and core values that coincide with ours. This

acquisition is in accordance with our strategy towards

2020, which implies a growth initiative in Sweden.

This agreement gives us good opportunities to

participate in a growing Swedish civil engineering

market," says Morten Grongstad, CEO of AF Gruppen.

For further information:

Morten Grongstad, CEO. Tel: +47 99 15 39 05

Arild Moe, EVP Civil Engineering. Tel. +47 91 37 62 65

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