Update on proceeds distributions following closing of Transaction

Reference is made to the press release issued by 24SevenOffice Group AB (the “Company” or “24SevenOffice”) on 12 November 2024 announcing that the Company had entered into a definitive agreement (the “Purchase Agreement”) with Abacus Bidco Oy (the “Purchaser”), the holding company of Accountor Software, which is majority owned by funds managed by KKR, a leading global investment firm, for the sale of certain subsidiaries and assets of 24SevenOffice (the “Transaction”).

 

All closing conditions were satisfied on 17 December 2024 and the completion of the Transaction is contemplated to take place 30 December 2024.

 

In accordance with the terms of the Purchase Agreement, the purchase price in the Transaction will be fully settled in cash. As previously announced, the Company’s intention has been to retain at least SEK 200 million of such proceeds for investments in the Company’s remaining businesses while also proposing that a substantial dividend is paid to the Company’s shareholders.

 

The Board of Directors has received numerous inquiries regarding the Company’s plans for distributing the dividend following receiving the proceeds from the Transaction. Due to limitations for distributing dividends pursuant to mandatory Swedish law, the dividend will be proposed to be paid in two installments of around SEK 6.85 and SEK 16.65 per share, respectively, corresponding to a total dividend amount of SEK 23.50 per share, which is SEK 0.50 per share more than previously indicated by the Company.

 

The Board of Directors intends to propose that the first installment of around SEK 6.85 per share is resolved upon at an extraordinary general meeting based on distributable amounts pursuant to the annual accounts for 2023. A notice to the extraordinary general meeting will be published shortly.

 

The Board of Directors intends to propose that the second installment of around SEK 16.65 per share is proposed to be resolved upon at the annual general meeting 2025, to be held after the annual accounts for 2024 has been finalized and audited. The Company intends to finalise the annual accounts as soon as possible and aims to hold the annual general meeting by the end of Q1 2025 and, subject to shareholder approval of the Board of Directors’ dividend proposal, distribute the second installment to the shareholders shortly thereafter.

 

The Board of Directors is open to discussing and potentially proposing an increase of the second installment of the dividend, provided that a majority of the Company's shareholders would support this at the annual general meeting 2025. The Board of Directors however notes that such an increase could necessitate a reduction in investments across the Company's remaining businesses, concepts, and technologies due to potential capital constraints, or require future equity capital increases to fund such investments and initiatives. The Board of Directors suggests that any potential capital shortfalls resulting from an increased dividend could be mitigated by the general meeting granting the Board of Directors authority to initiate capital increases immediately following the second dividend installment, should the Company’s available capital fall significantly below the level needed to pursue the planned initiatives.

 

Please be advised that the dividend may be subject to Swedish withholding tax by the Swedish tax authorities for international shareholders. International investors must seek its own advice on the tax implications and the company cannot advise, be held responsible or answer any direct questions regarding the tax implications.

 

For further information please contact:

Eirik Aalvik Stranden, CEO

Tel: +47 247 00 030, [email protected]

Ståle Risa, Chairman

Tel: +47 247 00 000, [email protected]

 

Certified Adviser

The Certified Adviser to 24SevenOffie on Nasdaq First North Growth Market is Partner Fondkommission.

Address: Lilla Nygatan 2, 411 09 Gothenburg

Telephone: +46 (0)31-761 22 30

Website: partnerfk.com

24SevenOffice in brief

At 24SevenOffice, we are passionate about delivering modular and flow-focused business systems tailored to meet the unique needs of companies of all sizes.

 

We understand that businesses require flexibility and scalability, which is why we provide a module-based solution that enables you to create the perfect workflow, adapting to your evolving requirements.