STOCKHOLM Jan 13 Swedish small-cap industrial
firm Duroc said on Friday it was buying the far
larger International Fibres Group from one of its largest owners
by issuing new shares, sending Duroc shares sharply higher.
* Acquires International Fibres Group AB (IFG) from Peter
Gyllenhammar AB (PGAB).
* Acquisition is paid in full with 31,671,100 newly issued
shares in Duroc.
* PGAB currently owns around 18 percent of Duroc shares, and
will through the deal initially own around 85 percent of shares
and votes in the expanded Duroc.
* Duroc's current largest owner AB Traction is
positive to the proposal and will vote in favour of it at the
EGM on Feb. 15.
* In connection with the deal Traction plans to buy
1,825,000 Duroc shares from PGAB.
* IFG makes around 110,000 tonnes fibre and yarn annually at
its subsidiaries in the Unites States, United Kingdom, Austria
and Belgium, generating sales of around 1.9 billion Swedish
crowns ($213 million), with a pretax profit of around 90 million
* With the acquisition, Duroc's annual sales will rise to
around 2.3 billion crowns.
* Duroc shares rise 79 percent at 1001 GMT.
* IFG's fibres are used for many different applications by
industrial buyers within for example the car industry and the
textile industry.($1 = 8.9188 Swedish crowns)
(Reporting by Johannes Hellstrom; editing by Niklas Pollard)