buglerbilly
05-03-10, 01:57 PM
Investor Buys Big In Defence Concern Saab
(Source: The Local; issued March 5, 2010)
The Wallenberg family-controlled firm Investor has purchased 11.2 million b-shares, 10.2 percent of the capital, in defence concern Saab. The price tag comes in at 1.1 billion kronor ($150 million), according to a statement.
Before the purchase of the shares from UK defence firm BAE Systems, Investor owned 19.8 percent of the capital and 38 percent of the votes in the Swedish concern. According to the Investor statement, BAE Systems plans to sell off its entire shareholding in Saab during 2010.
In 1995 Saab and BAE Systems formed a jointly owned company to develop the Jas 39 Gripen fighter aircraft. BAE Systems at the time bought 35 percent of Saab shares from Investor. The UK firm has since sold off some of the shares.
Over time the business interests of BAE Systems and Saab have gone their separate ways. Investor has pledged to support Saab's continued restructuring, the firm said in its statement.
"In line with our stated strategy to strengthen ownership in our key investments, we have now acted on an opportunity to increase our ownership stake to what we consider to be an attractive price," Investor CEO Börje Ekholm said.
The transaction will not result in any mandatory bid obligations, according to Oscar Stege Unger at Investor.
The share purchase was completed at 95.50 kronor per share; Thursday's closing price for Saab amounted to 105.50 kronor.
"We have previously held 38 percent of Saab, so we have already secured an exception from mandatory bid regulations," he told news agency TT.
Saab's third major shareholder is one of the Wallenberg family foundations, with around 5 percent of the votes.
Investor has motivated increasing its stake in Saab in that "at these levels" it becomes an interesting financial deal, Oscar Stege Unger said. The deal furthermore follows a successive winding up of the cooperation between Saab and BAE Systems, which has continued over several years.
"They have in practice ceased, in as much as Saab manages the Gripen exports itself. There has also been a degree of overlapping between BAE and Saab in larger deals," he said.
"Now BAE have decided that they do not see this as a strategic holding and want to pull out. We also think that it is good that we clarify the ownership structure," he said.
BAE Systems also holds an interest in the European Joint Strike Fighter (JSF) project. (ends)
Investor Acquires 10.2 percent of Saab AB from BAE Systems
(Source: Investor AB; issued March 5, 2010)
Investor has reached an agreement with BAE Systems to acquire 11,166,173 B-shares in Saab AB, corresponding to 10.2 percent of the capital, at a price of SEK 95.50 (*) per share, or SEK 1,066 m. in total.
Prior to the transaction, Investor owns 4,207,123 A-shares and 17,404,802 B-shares in Saab AB, corresponding to 19.8 percent of the capital and 38.0 percent of the votes.
Investor will use the existing right in Saab AB's Articles of Association to convert 2,300,000 A-shares to B-shares in conjunction with the transaction. BAE Systems has also today communicated that it will convert all its A-shares to B-shares.
Following the transaction, and Investor and BAE Systems' conversion of A-shares to B-shares, Investor will own 1,907,123 A-shares and 30,870,975 B-shares in Saab AB, corresponding to 30.0 percent of the capital and 39.5 percent of the votes respectively.
"Through the transaction, we have clarified the ownership structure in Saab AB. BAE Systems has been a good partner for Saab AB, but over time there has been less alignment of interests and the emergence of some overlapping businesses, while Saab AB has built a strong internal export capability. We will continue to support Saab AB through the ongoing restructuring, which well executed, we expect will lead to significant operational improvements. We have pursued the opportunity to increase our ownership at what we view as an attractive price, in line with our communicated strategy to strengthen our position in selected Core Investments", comments Investor's CEO Börje Ekholm.
Today, BAE Systems has also communicated its intention in due course to divest its remaining holding in Saab AB.
The transaction is subject to review and approval by the relevant authorities. Assuming approval, the transaction is expected to close during the second quarter.
BACKGROUND NOTES:
In 1995, Saab AB and BAE Systems created a 50/50 Joint Venture to develop and explore the Gripen Export business. In conjunction with the Initial Public Offering of Saab AB in 1998, BAE Systems acquired 37,367,346 shares, corresponding to 35.1 percent of the capital and 35.0 percent of the votes in the company from Investor. A close industrial co-operation was established between Saab AB and BAE Systems, mainly relating to the export of Gripen.
Since then, Saab AB has gradually built up internal export sales competence relating to Gripen. In 2004, Saab AB assumed full responsibility for subsequent export campaigns and in 2005 BAE Systems reduced its ownership in Saab AB to 20.5 percent of the capital and 20.3 percent of the votes.
*) The purchase price will be adjusted for any value transfers (e.g. dividends) prior to the closing of the transaction.
Investor AB is a Nordic-based industrial holding company founded almost one hundred years ago by the Wallenberg family. Today we have investment activities in Europe, the United States and Asia. The business concept is to generate attractive long-term returns for our shareholders by owning and developing companies with solid potential for value creation. We are an engaged owner and apply experience, knowledge and a unique network to develop listed and unlisted companies to make them best-in-class.
-ends-
(Source: The Local; issued March 5, 2010)
The Wallenberg family-controlled firm Investor has purchased 11.2 million b-shares, 10.2 percent of the capital, in defence concern Saab. The price tag comes in at 1.1 billion kronor ($150 million), according to a statement.
Before the purchase of the shares from UK defence firm BAE Systems, Investor owned 19.8 percent of the capital and 38 percent of the votes in the Swedish concern. According to the Investor statement, BAE Systems plans to sell off its entire shareholding in Saab during 2010.
In 1995 Saab and BAE Systems formed a jointly owned company to develop the Jas 39 Gripen fighter aircraft. BAE Systems at the time bought 35 percent of Saab shares from Investor. The UK firm has since sold off some of the shares.
Over time the business interests of BAE Systems and Saab have gone their separate ways. Investor has pledged to support Saab's continued restructuring, the firm said in its statement.
"In line with our stated strategy to strengthen ownership in our key investments, we have now acted on an opportunity to increase our ownership stake to what we consider to be an attractive price," Investor CEO Börje Ekholm said.
The transaction will not result in any mandatory bid obligations, according to Oscar Stege Unger at Investor.
The share purchase was completed at 95.50 kronor per share; Thursday's closing price for Saab amounted to 105.50 kronor.
"We have previously held 38 percent of Saab, so we have already secured an exception from mandatory bid regulations," he told news agency TT.
Saab's third major shareholder is one of the Wallenberg family foundations, with around 5 percent of the votes.
Investor has motivated increasing its stake in Saab in that "at these levels" it becomes an interesting financial deal, Oscar Stege Unger said. The deal furthermore follows a successive winding up of the cooperation between Saab and BAE Systems, which has continued over several years.
"They have in practice ceased, in as much as Saab manages the Gripen exports itself. There has also been a degree of overlapping between BAE and Saab in larger deals," he said.
"Now BAE have decided that they do not see this as a strategic holding and want to pull out. We also think that it is good that we clarify the ownership structure," he said.
BAE Systems also holds an interest in the European Joint Strike Fighter (JSF) project. (ends)
Investor Acquires 10.2 percent of Saab AB from BAE Systems
(Source: Investor AB; issued March 5, 2010)
Investor has reached an agreement with BAE Systems to acquire 11,166,173 B-shares in Saab AB, corresponding to 10.2 percent of the capital, at a price of SEK 95.50 (*) per share, or SEK 1,066 m. in total.
Prior to the transaction, Investor owns 4,207,123 A-shares and 17,404,802 B-shares in Saab AB, corresponding to 19.8 percent of the capital and 38.0 percent of the votes.
Investor will use the existing right in Saab AB's Articles of Association to convert 2,300,000 A-shares to B-shares in conjunction with the transaction. BAE Systems has also today communicated that it will convert all its A-shares to B-shares.
Following the transaction, and Investor and BAE Systems' conversion of A-shares to B-shares, Investor will own 1,907,123 A-shares and 30,870,975 B-shares in Saab AB, corresponding to 30.0 percent of the capital and 39.5 percent of the votes respectively.
"Through the transaction, we have clarified the ownership structure in Saab AB. BAE Systems has been a good partner for Saab AB, but over time there has been less alignment of interests and the emergence of some overlapping businesses, while Saab AB has built a strong internal export capability. We will continue to support Saab AB through the ongoing restructuring, which well executed, we expect will lead to significant operational improvements. We have pursued the opportunity to increase our ownership at what we view as an attractive price, in line with our communicated strategy to strengthen our position in selected Core Investments", comments Investor's CEO Börje Ekholm.
Today, BAE Systems has also communicated its intention in due course to divest its remaining holding in Saab AB.
The transaction is subject to review and approval by the relevant authorities. Assuming approval, the transaction is expected to close during the second quarter.
BACKGROUND NOTES:
In 1995, Saab AB and BAE Systems created a 50/50 Joint Venture to develop and explore the Gripen Export business. In conjunction with the Initial Public Offering of Saab AB in 1998, BAE Systems acquired 37,367,346 shares, corresponding to 35.1 percent of the capital and 35.0 percent of the votes in the company from Investor. A close industrial co-operation was established between Saab AB and BAE Systems, mainly relating to the export of Gripen.
Since then, Saab AB has gradually built up internal export sales competence relating to Gripen. In 2004, Saab AB assumed full responsibility for subsequent export campaigns and in 2005 BAE Systems reduced its ownership in Saab AB to 20.5 percent of the capital and 20.3 percent of the votes.
*) The purchase price will be adjusted for any value transfers (e.g. dividends) prior to the closing of the transaction.
Investor AB is a Nordic-based industrial holding company founded almost one hundred years ago by the Wallenberg family. Today we have investment activities in Europe, the United States and Asia. The business concept is to generate attractive long-term returns for our shareholders by owning and developing companies with solid potential for value creation. We are an engaged owner and apply experience, knowledge and a unique network to develop listed and unlisted companies to make them best-in-class.
-ends-