STOCKHOLM, Sweden, Oct. 04, 2005 (PRIMEZONE) -- Today, New Wave Group has entered into an agreement with Royal Scandinavia A/S, implying that the Share Transfer Agreement, which the parties entered into on May 31, 2005, regarding the acquisition of 51% of the shares in Orrefors Kosta Boda Holding AB with subsidiaries, is changed and amended in the way that the acquisition include all shares in Orrefors Kosta Boda Holding AB. The purchase sum for all shares in Orrefors Kosta Boda Holding AB amounts to approximately 24.5 MSEK and the shares have been considered to have been taken into possession on June 1, 2005.
The guarantee given by Royal Scandinavia A/S that the Orrefors Kosta Boda group of companies shall not make a loss during the period June 1 -- December 31, 2005, has in the new agreement been removed and cancelled, meaning that there no longer exist such a guarantee from the seller.
The aquisition has been consolidated result wise into the New Wave Group of companies from June 1, 2005, inclusive.
Royal Scandinavia A/S will remain with a loan of 90 MSEK to Orrefors Kosta Boda up to December 31, 2007, inclusive, which is subordinated the company's bank debts. Also, New Wave Group has granted Orrefors Kosta Boda a loan on the same amount. Besides this, the Orrefors Kosta Boda group of companies is financed through bank loans.
The action-plan for effectiveness and rationalizations of the Orrefors Kosta Boda group of companies, which has been decided earlier, goes according to plan.
New Wave Group believes that the integration of the Orrefors Kosta Boda group of companies and the achievement of the intended synergizes, which have been communicated earlier, will be considerable facilitated of that Orrefors Kosta Boda is a wholly-owned subsidiary, which also has been the most important reason for the new agreement with Royal Scandinavia A/S.
Ytterby October 4, 2005
New Wave Group AB (publ) Goran Harstedt dCEO
For further information contact: Torsten Jansson CEO in New Wave Group Tele: +46-708-998050, +46-303-246501
Goran Harstedt dCEO in New Wave Group Tele: +46-708-998017, +46-303-246502
New Wave Group in brief New Wave is a promotional and retailing company that operates within two business areas, in the Corporate Promotional area through sales of promo waer, promotional products & gifts and work wear to independent promotion companies, as well as in the Retailing business area via retailers mainly within sportswear and shoes. By operating within both areas, the Group's risk spreading and the coordination advantages increase. The Group's most well-known trademarks are Clique, Craft, Orrefors, Kosta Boda, Seger, Grizzly, James Harvest Sportswear, Jobman, New Wave, Pax, Projob, Sagaform, Umbro (license), Nordica (license), Rollerblade (license) and Printer Active Wear.
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