KappAhl Holding AB (publ) offers SEK 102 per share in AB Lindex (publ)

KappAhl Holding AB (publ) ("KappAhl" or "the Company"), today announces a cash offer to the shareholders in AB Lindex (publ) ("Lindex") to tender all outstanding shares in Lindex to KappAhl ("the Offer").


  • KappAhl offers SEK 102 in cash per share in Lindex.[1]
  • By bringing together Lindex and KappAhl into one group with two separate store networks, KappAhl is taking the first step towards the creation of a new European multi-brand retail group.
  • The Offer corresponds to a premium of 15 per cent compared to the closing price of the Lindex share on OMX on 10 August 2007 and of 15 per cent compared to the average closing price of the Lindex share on OMX during the last three months.
  • KappAhl estimates that earnings per share for the accounting year 2007/08 will be positively affected.[2]
  • The acceptance period is expected to commence on 29 August 2007 and end on 21 September 2007. The cash settlement is expected to commence on 28 September 2007.
  • A press conference in Swedish in connection to the Offer will be held on Operaterrassen, Karl XII:s Torg, Stockholm, on 13 August 2007 at 2 pm (CET) and a telephone conference in English will be held at 4 pm (CET).

"We are now taking another step in KappAhl's development towards becoming a corporate group operating several store networks with separate brands. Our intention is that KappAhl and Lindex will be the beginning of a portfolio of store networks with strong brands. The common denominator is fast moving consumer retail, preferably with an element of fashion. KappAhl and Lindex in one corporate group amount to two strong, restructured companies which will continue to develop independently, but where there are opportunities to educate and to economise within areas which are competition neutral. Together we can benefit from the economies of scale which exist within, among other areas, product sourcing, logistics and IT."

"The Offer will be financed with bank loans, some of which it is intended to refinance later this autumn, through a rights issue with preferential rights for existing shareholders. Pegatro Limited, which today owns 30 per cent of KappAhl's share capital, will subscribe for its part of the Rights Issue. The new group will therefore, for an interim period, have a higher debt level than is the case with KappAhl today and therefore, most likely, also have a reduced payout ratio. It is our belief that the strong cash flow in the company, together with the larger portion of debt financed capital, will create an attractive return on equity for the interim period during which the loans will be amortised."

Christian W. Jansson, Managing director and CEO of KappAhl.

For more information, contact:
Christian W. Jansson, Managing Director and CEO Tel. +46 (0)70 995 02 01
Håkan Westin, CFO KappAhl.Tel. +46 (0)70 471 56 64

KappAhl is a leading Nordic fashion chain with more than 270 stores in Sweden, Norway, Finland and Poland. We design, market and sell clothes for the entire family, but our primary target group is women aged 30 to 50 who buy for the entire family. KappAhl's head office and distribution centre, which handles transport to all stores, are located in Mölndal, on the outskirts of Göteborg, Sweden. KappAhl employs around 3,700 people and more than 90 per cent are women. During the 2005/2006 financial year, KappAhl reported sales of SEK 4.2 billion, with an operating profit of SEK 530 million. KappAhl is listed on the Stockholm Stock Exchange. Further information about the company is available on www.kappahl.com.

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