Svedbergs

The preliminary outcome of the rights issue indicates that 17,312,992 shares, corresponding to approximately 98.1 per cent of the offered shares, have been subscribed for by exercise of subscription rights. Additionally, applications have been received for subscription without exercise of subscription rights of 13,805,873 shares, corresponding to approximately 78.2 per cent of the offered shares in the rights issue. In aggregate, the preliminary outcome of the rights issue thereby indicates that approximately 176.3 per cent of the rights issue has been subscribed for. The rights issue is thus oversubscribed. As a result of the rights issue, Svedbergs Group receive net issue proceeds, net after deduction of issue costs, of approximately SEK 392 million, which will be used in its entirety to repay part of Svedbergs Group’s bridge loan facility of SEK 550 million, which was raised in connection with the acquisition of Thebalux Holding B.V. (”Thebalux”), and thereby simultaneously strengthen Svedbergs Group’s capital structure after the acquisition of Thebalux.

Per-Arne Andersson, President and CEO of Svedbergs Group:
“We are grateful and proud of the strong support which both existing and new shareholders have shown for our rights issue, which has been oversubscribed. With the proceeds from the rights issue, our capital structure is strengthened after the strategic acquisition of Thebalux, a well-established bathroom furniture supplier in the Netherlands. We are now continuing our growth journey in accordance with our goal of becoming the leading bathroom group in northern Europe.”

For those who have subscribed for shares with subscription rights and thus have received paid subscribed shares (Sw. betalda tecknade aktier (”BTA”)), the last day for trading in BTAs will be 29 January 2024. When the increase in share capital has been registered with the Swedish Companies Registration Office, the BTAs will be converted into new shares. The new shares subscribed for with subscription rights are expected to start trading on Nasdaq Stockholm around 2 February 2024.

The final outcome of the rights issue is expected to be announced on 25 January 2024. Those who have subscribed for shares without subscription rights will be allotted shares in accordance with the principles set out in the prospectus published on 22 December 2023. Notice of allotment to the persons who subscribed for shares without subscription rights is expected to be distributed on or about 25 January 2024. Subscribed and allotted shares shall be paid for in cash in accordance with the instructions on the contract note. Those who have subscribed for shares through a nominee will receive notice of allotment in accordance with their respective nominee’s procedures. Only those who have been allotted shares will be notified. The new shares subscribed for without subscription rights are expected to start trading on Nasdaq Stockholm around 8 February 2024.

Shares and share capital

As a result of the rights issue, Svedbergs Group’s share capital will increase by SEK 22,068,372.50 , from the current SEK 44,154,697.50, to SEK 66,223,070.00 through the issuance of 17,654,698 new B shares. After the rights issue, the number of shares in Svedbergs Group will amount to 52,978,456 shares, of which 0 A shares and 52,978,456 B shares.

Advisors

Nordea is financial advisor to Svedbergs Group in connection with the Rights Issue. Mannheimer Swartling Advokatbyrå AB is legal advisor to Svedbergs Group.

For further information, please contact:

Per-Arne Andersson, President and Group CEO
E-mail: per-arne.andersson@svedbergsgroup.com
Tel: +46 70 638 50 12

Ann-Sofie Davidsson, CFO
E-mail: ann-sofie.davidsson@svedbergsgroup.com
Tel: +46 720 741 062

This information is information that Svedbergs Group (publ) is obliged to make public pursuant to the EU’s market abuse regulation. The information was submitted for publication, through the agency of the contact persons set out above, 22 January 2024 at 13:00 CET.

About Svedbergs Group

Svedbergs Group invests long-term in Europe’s strongest independent company that designs, manufactures and markets sustainable products and services for bathrooms. We grow through organic growth and acquisitions that complement and strengthen our group through new products in bathroom furniture and shower solutions, geographical spread and new knowledge in marketing, innovation and sustainability. We create value by maintaining the companies’ entrepreneurial drive and commitment, as well as by selectively finding synergies within, for example, purchasing. We call this cooperation without confusion.

Important information

The information in this press release does not constitute an offer to acquire, subscribe or otherwise trade in shares, subscription rights or other securities in the Company in any jurisdiction. Any invitation to the persons concerned to subscribe for shares in Svedbergs Group has only taken place through the prospectus published by Svedbergs Group on 22 December 2023 at https://offer.svedbergsgroup.com/.

This press release is not intended for, and may not be released, published or distributed, in whole or in part, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, the United States of America, including its territories and possessions, any state of the United States or the District of Columbia (the “United States”) or any other jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectus, registration or other actions in addition to what follows from Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in a manner that contravenes such restrictions or would entail such requirements. Failure to comply with this instruction may result in a violation of applicable securities legislation.

The securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (“Securities Act”), or under the securities laws of any state or other jurisdiction in the United States and may not be offered, subscribed, used, pledged, sold, resold, allotted, delivered or transferred, directly or indirectly, in or into the United States absent exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with securities laws of the relevant state or other jurisdiction in the United States. All offers and sales of securities in connection with any rights offer by the Company will be made, subject to certain limited exceptions, outside of the United States and in reliance on, and in compliance with, Regulation S under the Securities Act. There will be no public offering in the United States.

Within the European Economic Area (the “EEA”), no public offering of securities is made in other countries than Sweden. In other member states of the EEA, such an offering of securities may only be made in accordance with an applicable exemption in the Prospectus Regulation (EU) 2017/1129. What is said about other member states in the EU than Sweden shall also apply to the United Kingdom, where the Prospectus Regulation (EU) 2017/1129 forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

In the United Kingdom, this press release is only directed at "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation (EU) 2017/1129, as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, and who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order; or (iii) other persons to whom this press release may otherwise lawfully be communicated (all such persons together being referred to as "Relevant Persons"). Persons who are not Relevant Persons should not take any action on the basis of this press release and should not act or rely on it.

This press release contains certain forward-looking information that reflects the Company’s present view of future events as well as financial and operational development. Words such as “intend”, “assess”, “expect”, “may”, “plan”, “believe”, “estimate” and other expressions entailing indications or predictions of future development or trends, not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties as it depends on future events and circumstances. Forward-looking information is not a guarantee of future results or development and actual outcomes may differ materially from the statements set forth in the forward-looking information.