Two of Novestra’s portfolio companies have appointed advisors in ongoing M&A and IPO processes. Novestra now expects that the sale or listing of two of its portfolio companies will occur within 6-9 months. The value indications that have been given show valuation multiples in the range of 1 to 1.5 times annual sales, and differ from the cash flow values Novestra have used through NAV calculation.
These value indications give one of the companies a significantly lower value than the estimated value Novestra latest reported while the indicated value in the other company significantly exceeds the Novestra estimation. The combined estimated valuation for the two companies involved in the forthcoming transactions is in line with the carrying value as at December 31, 2012. Novestra will make the individual adjustments as above in the Q1 report.
Novestra participates, as on previous sales, in the sales processes, but has limited control as it is not the majority shareholder in any of the companies.
“As previously communicated, we hope to carry out the sales and distribute cash or shares to Novestra shareholders before or around the end of the year. Ideally, we also hope to be able to consolidate a business within the listed company after the majority of the assets have been distributed to our shareholders,” says Novestra’s Managing Director Johan Heijbel.
For further information, please contact Johan Heijbel, MD, AB Novestra, +46 (0)8 545 017 50.
About AB Novestra
Novestra is an independent investment company with a portfolio of investments in a number of
privately held growth companies including Explorica, Inc., MyPublisher, Inc., and Strax Group GmbH. In addition, Novestra has an investment corresponding to approximately 6 percent of the shares in WeSC AB, listed on First North.
The Novestra shares are listed on 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
The information in this press release is such that AB Novestra is required to disclose pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instrument Trading Act and/or the NASDAQ/OMX Stockholm rules. AB Novestra released the information for publication on March 22, 2013 at 11.00 am (CET).
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