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Small Swedish industrial firm Duroc bets on big buy, shares soar
January 13, 2017 / 10:17 AM / 10 months ago

Small Swedish industrial firm Duroc bets on big buy, shares soar

STOCKHOLM, Jan 13 (Reuters) - 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 crowns.

* 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)

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