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Offer price for Eltel’s initial public offering set at SEK 68 per share – trading on Nasdaq Stockholm commences today

Eltel AB (publ) (“Eltel” or the “Company”) today announces the outcome of the initial public offering (the “Offering”) of its shares and listing on Nasdaq Stockholm.

The Offering attracted strong interest among Swedish and international institutional investors as well as Swedish retail investors. The Offering was over-subscribed multiple times.

The Offering in Brief

  • The Offer Price has been set at SEK 68 per share, corresponding to a market capitalisation of Eltel of
    SEK 4,258 million. The Offering will result in gross proceeds to the Company of approximately SEK 1.3 billion before issue costs and fees.
  • The initial Offering size was increased in accordance with the terms of the Offering by 4,865,028 shares, resulting in a total of 36,665,459 shares, corresponding to 58.5% of the total number of shares in Eltel, being sold. The Offering comprises 19,485,294 primary shares and 17,180,165 secondary shares, of which BNP Paribas is selling 9,189,103 shares, 3i (and funds managed by 3i) is selling 7,456,535 shares and the other selling shareholders are selling 534,527 shares, with a portion of such aggregate proceeds to the selling shareholders to be subject to the escrow arrangements described in the prospectus.
  • In order to cover any over-allotments, the Principal Shareholders have undertaken to sell up to 5,499,818 additional shares, corresponding to 15% of the number of shares comprised by the increased Offering (the “Over-allotment Option”).
  • The total Offering will comprise 42,165,277 shares, corresponding to 67.3% of the total number of shares outstanding, if the Over-allotment Option is exercised in full.
  • The total value of the Offering amounts to SEK 2,867 million, assuming that the Over-allotment Option is exercised in full.
  • Following the conversion of the ownership structure including the new issue of shares in the Offering (which is expected to be registered in full on 10 February 2015), as described in the prospectus, the total number of shares in the Company will amount to 62,624,238 shares. [1]
  • Following completion of the Offering and assuming exercise in full of the Over-allotment Option, Eltel’s largest shareholders will include 3i (and funds managed by 3i) (20.0%), Zeres Capital (10.5%), BNP Paribas (7.6%), The Fourth Swedish National Pension Fund (7.5%), Swedbank Robur Fonder (6.0%) and Lannebo Fonder (5.0%).
  • All investors who have applied for shares in the Offering to the public in Sweden have been allocated at least 150 shares.
  • Trading in Eltel’s shares on Nasdaq Stockholm commences today, 6 February 2015, under the symbol “ELTEL”.

Axel Hjärne, CEO of Eltel comments:

“We are very grateful and proud of the strong support and interest we have received from investors. Our strong position and future growth potential are attractive for many investors. Our IPO is an important step in strengthening our company and culture. We look forward to interacting with our new investors, both institutional and retail, and are committed to delivering on our targets. We also hope to continue to attract new investors.”

Gérard Mohr, chairman of Eltel’s Board of Directors comments:

“We will have a solid and diverse shareholder base with well-known international and Swedish investors. The strong demand we have seen for the shares is evidence of the Company’s high quality, solid and profitable growth and exposure to the non-cyclical and long-term industry drivers of the Infranet market. On behalf of the Board, I look forward to continuing to support Eltel as a listed company.”

BNP Paribas, Morgan Stanley and SEB are acting as Joint Global Coordinators and Joint Bookrunners of the Offering and Pohjola Bank is acting as a Co-Lead Manager. Morgan Stanley will act as stabilisation manager in relation to the Offering.

About Eltel

Eltel is a leading European provider of technical services to the Infranet industry, which consist of companies that own and operate critical infrastructure networks in the areas of Power, Communication and Transport & Defence. Eltel offers services related to construction, installation, maintenance and operation of critical infrastructure to its blue-chip customer base. Eltel mainly operates throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa.

For more information, please contact

Gunilla Wikman, Investor Relations Manager at Eltel AB, tel: +46 725 843 630
gunilla.wikman@eltelnetworks.se

Hannu Tynkkynen, Senior Vice President, Group Communications at Eltel AB, tel:
+358 40 3114503
hannu.tynkkynen@eltelnetworks.com 

This announcement is not and does not form a part of any offer for sale of securities.

Copies of this announcement are not being made and may not be distributed or sent into the United States, Australia, Canada, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and accordingly may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any part of the Offering in the United States or to conduct a public offering of securities in the United States. 

Any offering of the securities referred to in this announcement has been made by means of a prospectus. This announcement is not a prospectus for the purposes of Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the “Prospectus Directive”). Investors should not subscribe for any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus.

In any EEA Member State other than Sweden that has implemented the Prospectus Directive, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive, i.e., only to investors who can participate in the Offering without an approved prospectus in such EEA Member State.

This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” “continue,” “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Eltel believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors, which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice.

[1] All shares in the Company have equal voting rights, one vote per share, which gives 62,624,238 votes in the Company.

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Elin Otter +46 72 595 46 92

elin.otter@eltelnetworks.se