NOT FOR DISTRIBUTION IN OR INTO
EVLI PLC HAS PUBLISHED AN EXEMPTION DOCUMENT DRAFTED FOR THE MERGER OF EVLI PLC AND EAB GROUP PLC, EAB INTENDS TO HOLD AN EXTRAORDINARY GENERAL MEETING
On
Evli and EAB have agreed in the Combination Agreement and the Merger Plan to continue their normal business activities in accordance with their usual and past practices during the merger process. Notwithstanding the foregoing, Evli and EAB have agreed that EAB shall have the right to distribute to its shareholders prior to the scheduled implementation date of the Merger an aggregate amount not to exceed the lesser of (a)
The Exemption Document
Today, Evli has published an exemption document concerning the Merger (the "Exemption Document") drafted for the Extraordinary General Meeting of EAB and for the purposes of issuing merger consideration shares to the shareholders of EAB. The Exemption Document is drafted in accordance with the Commission Delegated Regulation (
The Exemption Document will be available from or about
In accordance with the requirements of the Delegated Regulation, the Exemption Document includes narrative and financial information about the material impacts that the transaction will have on the Combined Company's financial statement. This previously unpublished financial information is published in this release. Capitalised terms not specified below have the same meaning as in the Exemption Document.
Illustrative combined financial information
The illustrative financial information about the material impacts of the Merger on Evli's financial statement have been prepared in accordance with the International Financial Reporting Standard (IFRS) applied at Evli and Evli's accounting policies. The illustrative combined financial information of the Combined Company is presented assuming the activities were included in the same group from the beginning of the period. The illustrative combined income statement information has been calculated by combining the financial information of Evli and EAB for the financial year ended
The combined financial information is presented for illustrative purposes only and is based on a hypothetical situation. It does not take into account the impacts from purchase price allocation, potential differences in accounting policies, transaction costs, tax impacts or potential refinancing. Neither does the illustrative combined financial information reflect any cost savings, synergy benefits or future integration costs that are expected to be generated or may be incurred as a result of the Merger. The illustrative combined financial information is based on audited information. The combined information is unaudited.
In financial reporting, the Merger will be accounted for as a business combination at consolidation using the acquisition method of accounting under the provision of IFRS 3. The purchase consideration is determined based on the fair value of the Merger Consideration on the Effective Date. The amount of the fair value of the Merger Consideration Shares will be recorded in Evli's consolidated financial statements as an equity increase so that the share capital is increased by
Illustrative combined income statements of the Combined Company
The following table sets forth the illustrative combined income statements of the Combined Company derived from Evli's audited carve-out financial statements for the financial year ended on
(MEUR) | Combined | Evli | EAB |
Net turnover1) | 133.7 | 116.2 | 17.5 |
Personnel expenses | -45.2 | -36.6 | -8.6 |
Other administrative expenses | -20.6 | -17.6 | -3.0 |
Other operating expenses | -2.1 | -1.3 | -0.8 |
Share of result of associated companies | 0.7 | 0.5 | 0.2 |
EBITDA2) | 66.6 | 61.5 | 5.1 |
% of net turnover | 50% | 53% | 29% |
Depreciation, amortisation and impairment | -7.3 | -4.8 | -2.5 |
Operating profit3) | 59.3 | 56.6 | 2.6 |
% of net turnover | 44% | 49% | 15% |
1) The illustrative combined net turnover is calculated by combining the operating income, interest income, fee and commission expenses and interest expenses of Evli and EAB in accordance with Evli's reporting policy. Previously, EAB has reported interest income and interest expenses as separate items after operating profit. For the purposes of this combining, these items are reclassified as a part of net turnover. 2) Operating profit + depreciation, amortisation and impairment 3) The illustrative combined operating profit does not include any purchase price allocation impacts such as amortisation and depreciation for any fair value adjustments on non-current assets or other purchase accounting impacts to be recognised in the combination of Evli and EAB under IFRS and, for this reason and others, is not representative of future operating results of the Combined Company. |
Board of Directors
FURTHER INFORMATION:
On behalf of Evli:
Maunu Lehtimäki, CEO,
Requests for interviews via the company's communications:
On behalf of EAB:
Evli and EAB in brief
Evli in brief
We see wealth as an engine to drive progress. We draw on our heritage, broad expertise and Nordic values to grow and manage wealth for institutions, corporations and private persons in a responsible way.
We are the leading asset manager in
*Kantar Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019, 2021, Kantar Prospera Private Banking 2019, 2020 Finland
**SFR Scandinavian Financial Research Institutional Investment Services Finland 2021
EAB in brief
DISTRIBUTION:
Nasdaq Helsinki
Main media
www.eabgroup.fi
Important Notice
This release is not an offer of shares in
This release does not constitute an offer of or an invitation by or on behalf of, Evli or EAB, or any other person, to purchase any securities.
This release does not constitute a notice to an Extraordinary General Meeting or an Exemption Document. Any decision with respect to the proposed statutory absorption merger of EAB into Evli in accordance with the Finnish Companies Act should be made solely on the basis of information to be contained in the actual notices to the Extraordinary General Meetings of Evli and EAB, as applicable, and the Exemption Document as well as on an independent analysis of the information contained therein. You should consult the Exemption Document for more complete information about the Combined Company and the Merger.
This release includes 'forward-looking statements' that are based on present plans, estimates, projections and expectations and are not guarantees of the Combined Company's future performance. They are based on certain expectations and assumptions, which, even though they seem to be reasonable at present, may turn out to be incorrect. The shareholders of Evli or EAB should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Combined Company to differ materially from those expressed or implied in the forward-looking statements. Neither Evli nor EAB, nor any of their respective affiliates, advisors or representatives or any other person undertakes any obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release.
This release includes estimates relating to the benefits expected to arise from the Merger, which have been prepared by Evli and EAB and are based on a number of assumptions and judgments. The assumptions relating to the estimated benefits and related Merger costs are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause the actual benefits and costs arising from the Merger, if any, to differ materially from the estimates in this release. Further, there can be no certainty that the Merger will be completed in the manner and timeframe described in this release, or at all.
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