Bergs Timber acquires all shares in Jarl Timber AB from Norvik

Apr 26, 2016. /Lesprom Network/. Bergs Timber AB signed a letter of intent regarding the acquisition of all shares in Jarl Timber AB  from Norvik Hf, company said in a statement.

The transaction is made on a debt free basis and payment will be paid in newly issued shares of Bergs Timber, which are issued at a price of SEK 2.30 per share. The issue price represents a premium to Monday's closing price of 16.2%. The final purchase price is determined based on working capital at the settlement time by 30 April 2016. Norvik expected to have a 29% stake in the Bergs Timber after completion of the transaction.

Norvik is a large privately owned Icelandic Group among others active in the building materials, sawmill / processing and real estate. Operations are conducted in several countries.

Jarl Timber conducts sawmill operations in Broakulla, Sweden. The geographical proximity of the Bergs Timber's plants in Gransjö, Orrefors and Nybro contribute positively to the industrial logic of the transaction. Moreover, Bergs Timber assessment that the acquisition brings the potential for synergies in production and marketing cooperation with Norvik.

The Board of Bergs Timber's assessment that the agreement expected to be signed in June and the Extraordinary General Meeting will take place shortly after the agreement is signed.

The acquisition is subject to completion of contract negotiations, implementation of the "due diligence", necessary regulatory approvals, the approval of the Extraordinary General Meeting of Bergs Timber and other customary closing conditions.