Amer Group to offer to buy Suunto Oyj's shares
1999-10-01, 10:27
Amer Group announces that it will make a public offer to buy Suunto Oyj's entire share capital, offering EUR 10.00 a share. A similar offer will be made to holders of Suunto's bonds with warrants. Moreover, Amer has today purchased 26.3% of Suunto's shares for EUR 10.00 a share.
Amer Group announces that it will make a public offer to buy Suunto Oyj's entire share capital, offering EUR 10.00 a share. A similar offer will be made to holders of Suunto's bonds with warrants. Moreover, Amer has today purchased 26.3% of Suunto's shares for EUR 10.00 a share.
The offer is 39% higher than Suunto's trade volume weighted average share price during the past three months (EUR 7.19) on the Helsinki Exchanges. Based on the offer price, the total value for the share capital and the bonds with warrants will be approximately EUR 56 million.
Amer Group's offer is subject to acceptance by shareholders holding a minimum of 90% of Suunto's issued share capital and shares that can be issued as a result of exercising the company's warrants. Amer may, however, choose to exercise the offer with less than 90% of the shares.
Amer Group intends to post the public offer documents to Suunto's shareholders on or around October 21st 1999. It is currently envisaged that the public offer will be open from October 25th to November 19th, unless it is extended. The objective is to make Suunto Amer Group's subsidiary by the end of the year. Suunto is listed on the Helsinki Exchanges and has currently approximately 700 registered shareholders. The financial adviser in the transaction is Conventum Corporate Finance Limited.
The Suunto Corporation comprises a Diving and Water Sports Division, an Outdoor Division and an Electronics Division. The company develops, manufactures and markets products such as wristop computers for outdoor activities, diving computers, compasses and products related to telecommunications technology. Suunto is a leading global supplier of compasses and wristop computers. The company's best known brands are Suunto, Recta and Bare.
The Suunto Corporation's consolidated net sales totalled approximately EUR 65 million last year. While net sales have grown rapidly over the last few years, profitability has not made similar progress. Operating profit amounted to EUR 2.5 million in 1998, compared to EUR 4.7 million the year before. In addition to Finland, Suunto also has operations in other countries including Canada, the US, Germany, France, the Netherlands and Switzerland. The Suunto Corporation employs some 600 people.
Amer is particularly interested in Suunto's R&D expertise in the field of sports electronics as well as its brands. We believe that Suunto will have a better opportunity to develop as part of a leading global sporting goods company than on its own. We will be able to use Amer's global distribution channels also to expand the marketing and distribution of Suunto's existing products, says Roger Talermo, President & CEO of Amer Group.
Amer Group is confident that Suunto will fit in well with the Group's portfolio and brand strategy, through which the company offers a wide range of sporting goods to the trade, while offering global game improvement products to consumers.
Amer Group will report its interim results for the period from January to August 1999 on October 5th and Suunto Oyj will report on October 7th.
AMER GROUP PLC
Communications Department
Marja-Leena Simola
Vice President, Communications
Tel. +358 9 7257 8306
Fax +358 9 791 385
E-mail: marja-leena.simola@amer.fi
For further information, please contact:
Mr Roger Talermo, President & CEO, Tel. +358 9 7257 8210
Mr Pekka Paalanne, Senior Vice President & CFO, Tel. +358 9 7257 8212
Amer Group announces that it will make a public offer to buy Suunto Oyj's entire share capital, offering EUR 10.00 a share. A similar offer will be made to holders of Suunto's bonds with warrants. Moreover, Amer has today purchased 26.3% of Suunto's shares for EUR 10.00 a share.
The offer is 39% higher than Suunto's trade volume weighted average share price during the past three months (EUR 7.19) on the Helsinki Exchanges. Based on the offer price, the total value for the share capital and the bonds with warrants will be approximately EUR 56 million.
Amer Group's offer is subject to acceptance by shareholders holding a minimum of 90% of Suunto's issued share capital and shares that can be issued as a result of exercising the company's warrants. Amer may, however, choose to exercise the offer with less than 90% of the shares.
Amer Group intends to post the public offer documents to Suunto's shareholders on or around October 21st 1999. It is currently envisaged that the public offer will be open from October 25th to November 19th, unless it is extended. The objective is to make Suunto Amer Group's subsidiary by the end of the year. Suunto is listed on the Helsinki Exchanges and has currently approximately 700 registered shareholders. The financial adviser in the transaction is Conventum Corporate Finance Limited.
The Suunto Corporation comprises a Diving and Water Sports Division, an Outdoor Division and an Electronics Division. The company develops, manufactures and markets products such as wristop computers for outdoor activities, diving computers, compasses and products related to telecommunications technology. Suunto is a leading global supplier of compasses and wristop computers. The company's best known brands are Suunto, Recta and Bare.
The Suunto Corporation's consolidated net sales totalled approximately EUR 65 million last year. While net sales have grown rapidly over the last few years, profitability has not made similar progress. Operating profit amounted to EUR 2.5 million in 1998, compared to EUR 4.7 million the year before. In addition to Finland, Suunto also has operations in other countries including Canada, the US, Germany, France, the Netherlands and Switzerland. The Suunto Corporation employs some 600 people.
Amer is particularly interested in Suunto's R&D expertise in the field of sports electronics as well as its brands. We believe that Suunto will have a better opportunity to develop as part of a leading global sporting goods company than on its own. We will be able to use Amer's global distribution channels also to expand the marketing and distribution of Suunto's existing products, says Roger Talermo, President & CEO of Amer Group.
Amer Group is confident that Suunto will fit in well with the Group's portfolio and brand strategy, through which the company offers a wide range of sporting goods to the trade, while offering global game improvement products to consumers.
Amer Group will report its interim results for the period from January to August 1999 on October 5th and Suunto Oyj will report on October 7th.
AMER GROUP PLC
Communications Department
Marja-Leena Simola
Vice President, Communications
Tel. +358 9 7257 8306
Fax +358 9 791 385
E-mail: marja-leena.simola@amer.fi
For further information, please contact:
Mr Roger Talermo, President & CEO, Tel. +358 9 7257 8210
Mr Pekka Paalanne, Senior Vice President & CFO, Tel. +358 9 7257 8212