Esmaeilzadeh Holding's portfolio company Lyvia raises new capital which results in a write up of Esmaeilzadeh Holding's assets and net asset value

Esmaeilzadeh Holding AB (publ) (“EHAB”) announces today that EHAB performs a write up of the portfolio company Lyvia Group AB (publ) (“Lyvia”). Lyvia has informed EHAB that the company intends to carry out a directed share issue of approximately SEK 186 million to a pre-money share valuation of SEK 5 billion and that Lyvia has so far obtained subscription undertakings of approximately SEK 186 million. EHAB has not subscribed for this new share issue. In addition to the new share issue, management in Lyvia and management in subsidiaries of Lyvia have also entered into an agreement with EHAB to acquire shares in Lyvia for a total of approximately SEK 86 million at the same valuation as the private placement. In total, there are commitments to acquire shares in Lyvia amounting to a value of approximately SEK 272 million. 

Lyvia's Board of Directors has also decided on an exclusive offer to entrepreneurs in companies that have been acquired or entered letters of intent within the group to be offered to invest in Lyvia until August 31, 2022, on the same terms as the private placement. The offer amounts to a total of SEK 250 million and is expected to provide the group with additional funds in addition to those described above. The decision is also in line with the group's strategy to create the conditions for successful and long-term ownership of acquired companies.

As communicated in a press release on May 24, 2022, EHAB has decided on a consolidation of a number of portfolio companies to form Lyvia. Following this restructuring and before the private placement, agreed future share transfers to management and the offer to the Lyvia Group's entrepreneurs, EHAB owns 100 percent of Lyvia.

To further demonstrate the development of EHAB's portfolio companies, a consolidated acquisition pipeline is published for the largest of EHAB's operational groups, Novedo Holding AB, Rebellion Operations AB (which EHAB owns via Rebellion Capital AB), Dentalum Group AB and Lyvia Group AB. For these, revenues on a pro forma basis amounted to approximately SEK 5.9 billion and EBITDA to SEK 1.2 billion (calculated per Q1 2022, rolling twelve months), including closed deals, companies with signed share purchase agreements and companies where letters of intent have been entered into. For only closed deals and companies where a share purchase agreement has been entered into, the corresponding figures amounted to SEK 3.9 billion for revenues (SEK 2.7 billion adjusted for EHAB's ownership share of the portfolio companies) and SEK 0.9 billion for EBITDA (SEK 0.6 billion adjusted for EHAB’s ownership). EHAB's operational groups have historically successfully closed about 95 percent of the deals where letters of intent have been entered into.

Considering the write up described above, EHAB's assets amounted to approximately SEK 9.1 billion as of May 31, 2022. Furthermore, the company had liabilities of approximately SEK 1.3 billion and equity, as well as net asset value, of approximately SEK 7.8 billion. Net asset value per share amounted to approximately SEK 10,246.

For further information, please contact:

Saeid Esmaeilzadeh, CEO and founder

Phone: +46 707 18 70 61

Email: [email protected]

Nils Fredrik Dehlin, General Counsel & IR

Phone: +46 720 90 26 99

Email: [email protected]

This information is such that Esmaeilzadeh Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 13 June 2022, 10.00 CEST.