Exits in difficult market shows the values in the portfolio
The Group’s result amounted to MSEK -0.5 (18.1) corresponding to -0.01(0.49) per share. Equity, as atSeptember 30, 2011 amounted to MSEK 332.9(392.2) corresponding to SEK 8.95 (10.55) per share.The Group’s cash and holdings in listed shares amounted to MSEK 58.0 (106.2). Interest-bearing debt has been amortized during the period by MSEK 50.5.
Novestra’s portfolio company Qbranchwas sold to Imtech from Holland during September. The purchase price for Novestras shares in Qbranch, including expected earn-out, amounted to MSEK 121, in addition to a dividend of MSEK 4.7 distributed prior to the sale. The sale corresponds to approximately SEK 3.4 per Novestra share and was 53 percent higher than the implicit value based on the Novestra share price as at August 31, 2011.
Novestra’s portfolio company Netsurvey was acquired in June by Wise Group AB, a company listed on First North. The transaction was made to a value which exceeded Novestra’s carrying value with approximately 14 percent. Based on the closing share price for the Novestra share on June 13, 2011the implicit surplus value was approximately 35 percent.
The business situation for the portfolio companies is very strong and prospects for significantly improved growth and increased profitability during 2011 are deemed as very good. Currently, there is no need for additional funding in any of the portfolio companies.
Strategic discussions regarding divestment or IPO’s are currently ongoing.The Board of Directors has made a decision in principle to distribute an entire holding, or part of companies that will be listed to Novestra’s shareholders.Additionally, the Board of Directors are evaluating the possibility of a one- time dividend in the near future.
The ExtraordinaryGeneral Meeting held on December 22, 2010 resolved on a distribution of 371 879 shares in WeSC, corresponding to a value of approximately MSEK 34.This distribution included, Novestra have distributed a total of MSEK 331 to the shareholders during the last six years, corresponding to SEK 8.9 per share.
The total return on the Novestra share since 2002 including dividends amounts to 224.4 percent, corresponding to anannual return of 12.5 percent. The total return index for the Stockholm stock exchange during the same period gave a return of 4.6 percent per year.
Comments from the Managing Director
“The divestment of Netsurvey and Qbranch at good values in a generally very tough market confirms that the long-term work in the portfolio companies has been the right strategy and proves that the ability to do business with quality companies exists regardless of market conditions. The completed divestments have been very good value-wise, at the same time it can be concluded that companies with the greatest potential in creating value remain in the portfolio”, says Johan Heijbel, Managing Director, Novestra.
For further information please contact Johan Heijbel, Managing Director, AB Novestra, phone no. +46 8 545 01750
The information provided in this report is such that AB Novestra is obliged to make public according to the Securities Market Act (sv. lagenomvärdepappersmarknaden). The information has been released to the media for publication on November 8, 2011 at 8.55 am (CET).
About AB Novestra
Novestra is an independent investment company with a portfolio of investments in a number of privately held growth companies including Diino Systems AB, Explorica, Inc., MyPublisher, Inc., and Strax Group GmbH. In addition, Novestra has an investment corresponding to approximately 5.9 percent of the shares in WeSC AB, listed on First North. The Novestra shares are listed on the Nasdaq OMX Stockholm, under the symbol NOVE, in the Small Cap section. For further information regarding AB Novestra, reference is made to www.novestra.com
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