EQT makes cash bid for Louis Poulsen & Co
EQT Scandinavia B.V. ("EQT") makes a cash bid for Louis Poulsen & Co. A/S through LP Danmark Holding A/S. The bid price is DKK 3,187.50 in cash per Class A share and DKK 1,700.00 in cash per Class B share.
LP Danmark Holding is a wholly-owned subsidiary of EQT Scandinavia B.V. and was established by EQT for the purpose of making the bid for Louis Poulsen & Co.
Louis Poulsen's & Co's Class B shares are listed on the Copenhagen Stock Exchange. LP Danmark Holding's bid represents a 44% premium to the average price during the month until 18 May, when Polaris Private Equity and HD Invest A/S made a bid for the shares. EQT's bid represents a 10% premium for both the Class A and the Class B shares to the bid made by Polaris Private Equity and HD Invest.
LP Danmark Holding currently holds no shares in Louis Poulsen & Co., but the purpose of the bid is to acquire all the shares in the company and then to seek to delist the company's shares on the Copenhagen Stock Exchange.
Louis Poulsen & Co. A/S is an international group with world-embracing activities, who sells and distributes electrical supplies and develops, manufactures and sells lighting fixtures. The Electrical Supplies Division has a leading position on the Danish market as one of the two large nation-wide electrical supplies wholesalers. The Lighting Division is a market leader in Denmark, where distribution is handled by the electrical supplies wholesaling business.
"We have been following developments in Louis Poulsen & Co. for some time. We believe that Louis Poulsen & Co. holds a significant potential for continued development and growth as an independent company," says Claes Dahlbäck, chairman of EQT Scandinavia B.V. "EQT will seek to strengthen the company's market position in the wholesale electricity business, both within existing and adjacent business areas and markets and within the lighting division. This will require significant investments in a number of areas, including in acquisitions, and it may have an adverse impact on profits in the short and medium term. Such a strategy can therefore best be pursued if the company is unlisted - and in private ownership."
"Through a close collaboration with the management of Louis Poulsen & Co., based on a common understanding of the business and the market in which Louis Poulsen & Co. operates, EQT intends to play a proactive role in seeking to contribute the necessary resources and ensuring the ownership stability necessary to develop and expand Louis Poulsen & Co.," Claes Dahlbäck goes on and adds, "In addition to contributing the necessary capital for investments and acquisitions, EQT will contribute an international network and industrial expertise for the benefit of the company's growth and development potential."
The Chairman of Louis Poulsen & Co., Bjørn Petersen, states about the bid: "The Board of Directors has received and read with interest the new bid for Louis Poulsen & Co. made by EQT. This is an interesting investor for Louis Poulsen & Co. as EQT takes an industrial approach to its investments. As stated in the bid, EQT's plans for the company are to further develop both of the company's business areas through organic growth as well as through acquisitions, and to generally strengthen the company's already strong market position."
The Board welcomes the bid. The bid for the Class A shares is on a level with the bid from Otra in 1995, while the bid for the Class B shares significantly exceeds Otra's bid.
The offer period runs from 14 June to 12 July 1999.
The offer document is available from Enskilda Securities at tel. +45 3317 7440.
The Board of Directors of LP Danmark Holding A/S
Any questions should be directed to:
Claes Dahlbäck, EQT Scandinavia B.V. tel: +46 8 614 2012
Bjørn Høi Jensen, EQT Partners A/S, tel: +45 3312 1236