Correction: Harju Elekter purchases SEBAB AB

13.12.2017 Harju Elekter Sweden Market Announcements

Correction: operating profit of SEK 5,288 thousand was added into the table of SEBAB AB’s financial summary for 2014.

On 12 December 2017, AS Harju Elekter signed a contract to acquire all of the shares of Swedish company SEBAB AB, a provider of sales and technical solutions, and its subsidiary Grytek AB, a manufacturer of pre-fabricated technical buildings, from the company Tnåa AB. The transaction price for the two companies was 3.6 million euros (SEK 36.0 million), of which 3.0 million euros (SEK 30.1 million) will be paid on 8 January 2018, the date of entry into force of the transaction, with the delayed part of payment being payable in accordance with the agreement. The acquired companies will initially continue to use their names and trademarks, operating as 100% subsidiaries of the Group.

Harju Elekter Group has been active on the Swedish market since 2010, delivering substations and industrial automation solutions to Swedish clients. As a result of this transaction, new prospective market segments will be entered in Sweden, and the Group’s product portfolio will be expanded. Concurrently, Harju Elekter Group’s capability to offer its Swedish clients more complete technical solutions and turn-key projects as well as service support will increase.

Andres Allikmäe, Tiit Atso (CFO) and Thomas Andersson were appointed as Members of the Management Board of SEBAB AB as well as Grytek AB. Thomas Andersson will continue as a CEO of SEBAB AB and Grytek AB.

SEBAB AB, financial summary 2014-2016

thousand SEK (1 SEK = 0,099 EUR) 2014 2015 2016
Cash and cash equivalents 3,496 1,828 6,809
Trade receivables 22,177 32,100 26,115
Inventories 7,745 7,515 9,054
Non-current assets 846 678 1,719
Total assets 34,264 42,121 43,697
Liabilities 14,822 20,834 19,228
Equity 19,442 21,287 24,469
   incl.share capital 120 120 120
Sales revenue 91,109 80,394 90,749
EBIT 5,288 3,895 5,232
Net profit 3,139 2,877 1,628
Basic earnings per share (SEK) 3,139 2,877 1,628
Number of shares 1,000 1,000 1,000
Dividend per share (SEK) 0.0 0.0 0.0

Since the end of the previous financial year there are no significant changes in the SEBAB AB’s business activities. According to Stock Exchange Rules and Regulations, the company Grytek AB, which is a part of the transaction, is insignificant.

We confirm that there are no valid contracts between Group’s enterprises and the acquired companies SEBAB AB and Grytek AB, and those have no loans or any court or arbitration proceedings involving the commercial undertaking, which could significantly impact the economic activity of the company.

The financial results of SEBAB AB and Grytek AB will be included in the consolidated reports of Harju Elekter as of 1 January 2018.

SEBAB AB is a marketing and engineering company for MV/LV power and distribution solutions for the construction, infrastructure and renewable energy sector. The company is headquartered in Malmö with its sales, production, warehouse and service units. Company’s branch offices, offering technical solutions, are also located in Stockholm, Borlänge and elsewhere in Sweden. Grytek AB is a producer of technical buildings. In 2016, turnover of the companies amounted to 12.0 million euros in total.

After launching its activities in 1968, Harju Elekter Group has developed into a leading producer of MV/LV electrical and engineering devices in the Baltic countries and a known and respected manufacturer in Scandinavia. Harju Elekter’s main field of business is the development, manufacturing and sale of equipment necessary for the distribution and transmission of electric energy. The core business is supported by a sheet metal plant in Estonia and the development and leasing of industrial real estate.

After the transaction, the following 100% subsidiaries are included to Harju Elekter Group: Harju Elekter AB, SEBAB AB and Grytek AB in Sweden, AS Harju Elekter, AS Harju Elekter Elektrotehnika, AS Harju Elekter Teletehnika and Energo Veritas OÜ (81%) in Estonia, Satmatic Oy, Finnkumu Oy, Telesilta Oy and Harju Elekter Kiinteistöt Oy in Finland as well as Rifas UAB and Automatikos Iranga UAB (67%) in Lithuania. In addition, AS Harju Elekter have financial investment in the Latvian electrical equipment sales company SIA Energokomplekss (14%) and in Estonian startup company Skeleton Technologies Group OÜ (10%).

Harju Elekter Group’s plants in Estonia, Finland and Lithuania employ more than 600 specialists, and the Group’s 9 months 2017 revenue amounted 74 million euros. Harju Elekter’s shares are listed on Nasdaq Tallinn.

According to the Rules and Regulations of Nasdaq Tallinn, this is not a transaction between related parties.

Andres Allikmäe
Chairman of the Management Board
+372 6747 400

Additional information: Tiit Atso, CFO and Member of the Management Board of AS Harju Elekter (+372 674 7400).


Prepared by:
Moonika Vetevool
Corporate communication and investor relations manager
+372 671 2761