THE BOARD PROPOSES REDEMPTION AND DISTRIBUTION OF THE INVESTMENT IN NOVE CAPITAL, CURRENTLY AMOUNTING TO APPROXIMATELY MSEK 300
• The Group’s net income amounted to MSEK 43.7 (167.6), corresponding to SEK 1.18 (4.5) per share. Equity rose to MSEK 761.8 (739.2), amounting to SEK 20.5 (19.9) per share. Cash and cash equivalents, including holdings in Nove Capital Fund, amounted to MSEK 317.3 (279.1).
• The four largest private holdings showed continued growth in revenues of between 18 and 66 percent. The value of Novestra’s investment in Nove Capital Fund since inception in May 2005, has increased by MSEK 110.4, equivalent to a return of 58 percent.
• The holding in Nove Capital is proposed to be redeemed and the cash to be distributed during the second quarter of 2007. The distribution will be done by issuing a redemption share for each Novestra share. The value as at September 30 amounts to approximately MSEK 300 corresponding to approximately 8 SEK per Novestra share.
• The four largest portfolio companies are all reviewing different strategic opportunities and decisions have been made on the respective boards seeking to create liquidity for the shareholders in the individual companies.
“We are continuing to look at and negotiate different divestment opportunities although the interest in small cap remains weaker than during the first part of the year. However, our portfolio companies continue to develop well and we remain positive about their prospects for growth during the remainder of the year.
The board and the management have reviewed the strategic opportunities for Novestra and are working on a plan for when the planned divestments and distributions have been completed. We are likely to be able to present these plans at the AGM in April.” Says Novestra’s Managing Director, Johan Heijbel.
About AB Novestra
Novestra is an independent investment company with a portfolio of investments in a number of privately held growth companies including Diino AB, Explorica, Inc., MyPublisher, Inc., Netsurvey AB, Qbranch AB and Strax Holdings, Inc.
In addition, Novestra has an investment in Nove Capital Fund, that primarily invests in public companies which are considered to have a value potential because of special situations such as reconstructions, turnarounds or for other reasons offer a significant upside potential and therefore an interesting risk/reward.
The Novestra shares are listed on the Nordic Small Cap list of the Stockholm Stock Exchange. For further information regarding AB Novestra, reference is made to www.novestra.com
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