Ratos sells Stofa to SE

2012-10-25

Ratos has signed an agreement to sell all the shares in the subsidiary Stofa to
the Danish energy and telecom group SE (Syd Energi) for DKK 1,900m (enterprise
value). The sale generates a net exit gain for Ratos of approximately SEK 850m
and an average annual return (IRR) of approximately 55%. The sale is subject to
approval from the relevant regulatory authorities and SE's Board of
Representatives.
Stofa is a Danish operator within broadband, cable TV and telephony which
provides some 375,000 Danish households with cable TV and almost 200,000 with
broadband. The services are delivered in close co-operation with 300 antenna
associations throughout Denmark. Stofa also sells to end-user subscribers who
are offered interactive TV services (pay TV), broadband and IP telephony.
Ratos acquired Stofa in summer 2010 and the company has since then focused its
strategy and implemented major changes in order to sharpen efficiency, customer
offerings and competitiveness. Stofa is now increasing the number of broadband
customers and selling more products to existing customers which will further
strengthen profitability and growth. Major investments have also been made in
both infrastructure and marketing. In addition, part of Canal Digital's Danish
cable TV business has been acquired. Today, Stofa is market-oriented, efficient
and a clear challenger to TDC/YouSee. Sales have risen from DKK 1,024m in 2009
to DKK 1,146m in 2011 and during the same period operating profit has risen from
DKK 92m to DKK 146m. The number of broadband customers has increased by more
than 10% during 2012.
Ratos's CEO, Susanna Campbell, comments: "Stofa is a fine and well-invested
company which we would have gladly owned for a few more years since we have not
yet shown its full potential. The many measures and investments carried out are
expected to provide good earnings development in the years ahead. But since our
discussions with SE, which is a very logical buyer, have resulted in them
wishing to buy at a price which takes the company's position and prospects into
account, we have agreed to sell."
The selling price for 100% of the shares (equity value) amounts to approximately
DKK 1,002m and the enterprise value amounts to DKK 1,900m. Ratos's share of the
equity value is approximately DKK 991m and the net exit gain amounts to
approximately SEK 850m, calculated on the book value of Ratos's holding in Stofa
at 30 June 2012. The final exit gain will be affected, among other things, by
Ratos's share in Stofa's profits during the period until final implementation of
the deal. Average annual return (IRR) amounts to approximately 55% (61% in DKK).
Ratos's holding in Stofa is 99%.
SE is a Danish energy and telecom group, which offers services within energy,
internet, TV and telephony. The company has some 700 employees and sales in
2011 totalled DKK 2.9 billion.
The sale is subject to approval from the relevant regulatory authorities and
SE's Board of Representatives. The Board of Representatives will be convened on
13 November. The deal is expected to be completed by year-end 2012 at the
earliest.
For further information, please contact:
Susanna Campbell, CEO Ratos, +46 8 700 17 00
Emma Rheborg, Head of Corporate Communications and IR Ratos, +46 8 700 17 20
Financial calendar from Ratos:
 Interim Report January - September 2012 9 November 2012
 Year-end report 2012                    15 February 2013
 Annual General Meeting 2013             17 April 2013

Ratos is a private equity conglomerate. The company's mission is to maximise
shareholder value over time through the professional, active and responsible
exercise of its ownership role in primarily medium to large unlisted Nordic
companies. Ratos's holdings include AH Industries, Arcus-Gruppen, Biolin
Scientific, Bisnode, Contex Group, DIAB, Euromaint, Finnkino, GS-Hydro, Hafa
Bathroom Group, HL Display, Inwido, Jøtul, KVD Kvarndammen, Mobile Climate
Control, SB Seating and Stofa. Ratos is listed on Nasdaq OMX Stockholm and
market capitalisation amounts to approximately SEK 17 billion.