5 January 2024 -Inin Group AS and Tom Wilhelmsen Holding AS have agreed to reverseInin Group's acquisition of 70 percent of the shares in mass handling and recycling company TW Gruppen AS. SinceInin Group took over as majority owner in October last year, operations at the mass recycling business at Disenå in Massebalanse Norge AS have been significantly delayed and the facility is not in full operation. This, in combination with potential problems with the ground conditions, has caused profitability issues and additional funding requirements. "The uncertainty in the operational issues related to the operations at Disenå together with market uncertainties entail that TW Gruppen AS will require significant contributions from Inin going forward, both in the form of capital and management resources. Inin has limited visibility on the amount of resources required. TW Gruppen AS is a small investment for Inin and Inin has therefore decided that it cannot justify continued engagement in this project given the risk-reward ratio. We have therefore agreed with Tom Wilhelmsen Holding AS to reverse the transaction. We wishTom Wilhelmsen the best of luck in the further development of the project." says Øivind Horpestad, CEO ofInin Group . The initial settlement for the acquisition of 70 percent of TW Gruppen consisted ofNOK 23 million inInin Group shares andNOK 5 million in cash.The Inin Group shares that were part of the share-based settlement - 7,886,714 in total - will be returned toInin Group as treasury shares, while Tom Wilhelmsen Holding AS will retain theNOK 5 million in cash as compensation for the reversal of the transaction. All ofInin Group's direct or indirect liabilities and financing obligations related to TW Gruppen will be taken over byTom Wilhelmsen Holding AS. InDecember 2023 ,Inin Group guided in its company update a 2023 pro-forma EBITDA ofNOK 117 million . With the reversal of the acquisition of TW Gruppen, the estimated pro-forma EBITDA for 2023 will be reduced by approximatelyNOK 1 million . As such, the reversal of the transaction will have a non-material impact onInin Group's 2023 results. Also, due to the significant leasing and real estate liabilities in TW Gruppen, the liabilities in the consolidatedInin Group balance sheet will be reduced following the reversal, and consequently the gearing ratio and the financial metrics ofInin Group will be positively impacted. Following the completion of this transaction, Inin Group AS will hold 8,580,938Inin Group shares. (ENDS) For further information, please contact: Øivind Horpestad, CEO ofInin Group , Tel: +47 910 00 626 About Inin Group AS Inin Group AS is a listed investment company operating as an industrial owner with investments in companies within infrastructure and industry services niches in the Nordics. The group creates value by identifying investment opportunities within profitable niches with potential for development, consolidation and growth, working in collaboration with the platform companies to deliver sustainable growth and superior profitability. For more information, please visit: www.inin.no
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