October 16, 2018 / 5:11 AM / a month ago

BRIEF-Ambea to buy Aleris care operations

Oct 16 (Reuters) - Ambea AB (Publ):

* AMBEA HAS ENTERED INTO AN AGREEMENT TO ACQUIRE THE CARE OPERATIONS OF ALERIS

* SAYS HAS ENTERED INTO AN AGREEMENT TO ACQUIRE CARE OPERATIONS OF ALERIS IN NORWAY, SWEDEN AND DENMARK (“ALERIS CARE”) AT A PURCHASE PRICE OF SEK 2.6 BILLION ON A DEBT FREE CASH FREE BASIS

* SAYS TRANSACTION IS SUBJECT TO REGULATORY APPROVAL BY RELEVANT COMPETITION AUTHORITIES AND CLOSING IS EXPECTED TO OCCUR DURING Q1 OF 2019, HOWEVER NO LATER THAN IN Q2 OF 2019

* SAYS INTENDS TO FINANCE TRANSACTION WITH EXISTING CREDIT FACILITIES AND NEW, SECURED BANK FINANCING

* SAYS IN ORDER TO REPAY PART OF BANK FINANCING AND TO LOWER AMBEA’S DEBT IN LINE WITH COMPANY’S LONG TERM FINANCIAL TARGETS, AMBEA INTENDS TO PROPOSE THAT A GENERAL MEETING RESOLVES ON A SHARE ISSUE, WITH PREFERENTIAL RIGHTS TO EXISTING SHAREHOLDERS

* SAYS PLANNED SHARE ISSUE IN THE AMOUNT OF APPROXIMATELY SEK 1.2 BILLION

* SAYS LARGER SHAREHOLDERS ACTR HOLDING AB AND ACTOR SCA, CONTROLLED BY KKR AND TRITON AND REPRESENTING APPROXIMATELY 50.1 PER CENT OF TOTAL NUMBER OF SHARES AND VOTES IN AMBEA, INTEND TO VOTE IN FAVOUR OF RIGHTS ISSUE AT A GENERAL MEETING AND TO SUBSCRIBE FOR THEIR RESPECTIVE PRO-RATA SHARES IN RIGHTS ISSUE

* SAYS ACQUISITION IS EXPECTED TO GENERATE BOTH DIRECT COST SYNERGIES AND OPPORTUNITIES FOR OPERATIONAL IMPROVEMENTS

* SAYS EXPECTED DIRECT COST SYNERGIES AMOUNT TO SEK 90 MILLION ANNUALLY, OF WHICH HALF ARE EXPECTED TO BE REALISED IN 2019 AND REMAINDER IN 2020

* SAYS IDENTIFIED OPERATIONAL IMPROVEMENTS AMOUNT TO SEK 30 MILLION, WHICH ARE EXPECTED TO BE ACHIEVED IN 2020

* SAYS FINANCIAL TARGETS REMAIN UNCHANGED, BUT THESE WILL ONLY BE ACHIEVED AFTER INTEGRATION AND SYNERGIES HAVE BEEN FULLY IMPLEMENTED Source text for Eikon: Further company coverage: (Stockholm Newsroom)

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