CityMail Group AB sells its holding in the Swedish distribution operations – CityMail Sweden AB
9:33AM 2002.03.22 (GMT)
CityMail Group AB, which is listed on the Stockholm Stock Exchange, has sold to Norway Post its holdings in the associated company, CityMail Sweden, the Swedish distribution operations.
CityMail Group owns 330 shares, corresponding to 33 per cent of CityMail Sweden. The shareholdings, which have a book value of SEK 33 million, will be disposed of in two stages.
In the first stage, CityMail Group will sell 159 shares for net revenues of approximately SEK 34 million. This sale is expected to generate capital gains of approximately SEK 18 million. Due to previous years losses, no tax expense will be incurred as a result of the transaction.
Following stage one, which also includes a new issue of shares subscribed for by Norwegian Post, CityMail Group will own approximately 14 per cent of the company.
The remaining 171 shares will be sold in the second stage, which will occur during the first quarter of 2006. The purchase price at this stage will be based upon the results (EBIT) for CityMail Sweden in 2005, multiplied by 9.
The transaction is conditional upon decisions by the competition authorities and payment will be made thereafter. Following the first stage of the transaction, CityMail Group’s liquid funds will amount to approximately SEK 70 million.
During 2000, CityMail Group started streamlining operations in order to focus on the profitable growth in Europe of the business area, OptiMail. The optimisation of postal flows is particularly important for larger consumer companies that invoice their customers in arrears, e.g. telecommunications operators and electricity companies. Revenues more than doubled during 2001 to SEK 172 million (SEK 64) and the business area, OptiMail, was responsible for the major part of this growth. The goal is to achieve a turnover of between SEK 400-500 million by 2003-2004.
A change of name to OptiMail AB will be proposed at the Annual General Meeting of the shareholders of CityMail Group AB to be held on 24 April. Commencing today, the 2001 annual report is available in PDF format on our web site: www.citymail.se.
For further information:
Fredrik Olsson, Managing Director+46 70 590 62 58
CityMail Group AB provides significant savings for its customers by coordinating, integrating, and optimising their international AR* postal flows. CityMail Group also owns shares in companies that conduct operations in the areas of computerized address handling and related services. The company has been listed on the O list of Stockholmsbörsen since 1998.
*Post of an administrative character
CityMail Group AB
