Altor Oil Service Invest AS, a newly established company controlled by Altor 2003 fund and Altor fund II (the Company), announces today that it would like to increase Altor's ownership in AGR.
The Company has mandated SEB Enskilda AS to purchase 13,367,700 shares corresponding to approximately 19.0% of the shares outstanding in AGR Group ASA at a price of NOK 40.00 per share. The closing price of AGR Group ASA today, 25 February 2008, was NOK 34.70. NOK 40 per share represents a premium of 30% relative to the volume- weighted average price over the last week of NOK 30.76 per share.
The Company (together with related parties) holds 21,971,328 shares in AGR corresponding to approximately 31.2% of the shares outstanding. In the event the order is completed, the Company will increase its stake to more than 1/3 of the shares outstanding and will therefore launch a mandatory offer for the remaining shares.
"In our opinion, AGR has a range of attractive growth options going forward, but capturing the full value of these may require more investment, time and managerial focus going forward. Thus, our aim will be to support the company`s existing management in focusing and delivering against this strategy," said Hugo Maurstad, Partner at Altor Equity Partners.
Altor's plans would involve focusing each of AGR's three stand-alone business areas, disposing of non- core projects over the next 18 months, and implementing a more rigorous discipline with respect to cost and capital. This would be done in collaboration with the company's existing top management. During such a process Altor would foresee several possible transactions, from which AGR would benefit strongly from the support of Altor's experienced transaction team.
The Company (together with related parties) holds 21,973,209 shares in AGR corresponding to approximately 31.2 per cent of the shares outstanding.
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