UPDATE 2-Intrum Justitia proposes spin-offs to meet EU demands on Lindorff merger, shares fall | Reuters


(Adds CFO comments, shares)

May 18 Swedish debt collection firm Intrum
Justitia proposed a string of divestments on Thursday
which it believes will be enough to assuage European Commission
concerns over its planned merger with Norwegian rival Lindorff.

* “We judge there is a very low risk that this package will
not be received in a positive way,” Intrum Justitia CFO Erik
Forsberg told journalists on a conference call on Thursday

* “There are no guarantees but we are doing exactly what the
EU Commission has asked us to do.”

* Intrum shares fall as much as 8.1 pct in early trade

* Proposal of remedies to meet requirements of the EU merger
regulation related to merger with Lindorff, in which Nordic
Capital Fund VIII is currently the indirect majority shareholder

* Based on its initial investigation, the European
Commission has informed the parties of potential competition
concerns in five Nordic/Baltic markets, relating to both debt
collection and debt purchasing in each market

* Says parties have therefore proposed a divestment of
Lindorff’s entire business in Denmark, Estonia, Finland and
Sweden as well as Intrum Justitia’s entire business in Norway

* Intrum shareholders approved its acquisition of Lindorff
late last year, following last-minute revisions to the initial

* Says combined group would have pro-forma EBITDA, excluding
impact of synergies and non-recurring items, of about SEK 5.0
billion for 2016, of which an estimated 12%-13% derives from
five units proposed to be divested

* Says units proposed to be divested account for an
estimated 30 percent of annual cost synergies forecast for the
combination of Intrum Justitia and Lindorff

* Says we expect a final decision from European Commission
no later than June 12 2017
Source text for Eikon:
Further company coverage:
(Reporting by Olof Swahnberg and Niklas Pollard; Editing by
Helena Soderpalm)

Source: einnews.com