11/12/2007 10:00 AM
• Duni has agreed on a settlement regarding the selling price of Duni Americas by SEK 31 million compared to the buyer’s claim amounting to SEK 69 million
• Only portions of the provisions set aside will be used resulting in a positive P&L effect
This press release may not be announced, published or disseminated, in whole or in part, in the US, Canada, Australia or Japan.
On 31 August 2006 Duni entered into an agreement to sell Duni Americas to Innoware LLC (the “buyer”) for SEK 290 million. As a result of the sale of Duni Americas, the buyer brought a claim for approximately SEK 69 million against Duni based on closing date accounts prepared by the buyer. The dispute pertains to the size of the purchase price and not a claim for breach of warranties. In December 2006, Duni requested that a complete review of the closing date accounts and underlying vouchers be conducted and arbitration proceedings were thereafter commenced pursuant to the provisions of the sale and purchase agreement; this was reported in the prospectus which was prepared for Duni’s impending stock exchange listing.
Duni and the buyer have now agreed that the final purchase price be adjusted by SEK 31 million. Other outstanding dealings between the buyer and Duni are concluded and the buyer confirms that it is not aware of any claims against Duni which might arise based on the sale and purchase agreement.
As a consequence of the settlement, it will be necessary to use only portions of the provisions that have been set aside which will result in a positive P&L effect.
- It is very satisfying that we can now put this dispute entirely behind us. In addition, the fact that the outcome is positive compared to the provisions which Duni made shows that our assessment was conservative, says Fredrik von Oelreich, CEO of Duni.
Duni in brief
Duni is the leader in Europe in the design, production and marketing of premium disposable table top products. The net turnover increased by 7.9% from 1 January – 30 September 2007 compared with the same period last year. Duni has its headquarters in Malmö and production in Sweden, Germany and Poland. Duni's largest markets are Central and Northern Europe and, globally, the company’s products are sold in more than 40 countries. The group has approximately 2,000 employees in 17 countries and is indirectly owned by funds managed by EQT, a leading European private equity group. Duni’s turnover is approximately SEK 4 billion.
The press release is not intended for the general public, other than in Sweden. Neither is the press release otherwise directed at such persons whose participation requires prospectuses, registration or other measures in addition to those that result from Swedish law. The prospectus may not be distributed in any country where distribution or the press release requires any measures in accordance with the above or violates regulations in that country. Applications to acquire shares in contravention of the above may be considered invalid.
The shares being mentioned in the press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any provincial legislation in Canada and may not be offered for sale or sold, either directly or indirectly, within the USA or in Canada or to persons residing in these countries, except pursuant to an exemption from the registration requirements of the Securities Act or applicable Canadian provincial legislation.