STOCKHOLM, Sweden, May 7, 2003 (PRIMEZONE) -- By combining organic and acquisition-led growth, Intrum Justitia (Other OTC:INJJF), has become a leading European receivables management services provider. In certain markets, particularly in Central and Eastern Europe, the Group has entered into joint venture agreements with local providers, incorporating their owners into Intrum Justitia's group management structure.
One such agreement, of September 1999, and outlined in the Offering Circular prepared ahead of Intrum Justitia's Stockholm Exchange listing, stipulates that Visegrad NV ("Visegrad"), a company owned by the Regional Managing Director for Poland, the Czech Republic and Hungary, and an employee of the Group, possesses the right to acquire 40 percent of Intrum Justitia Central Europe BV ("IJCE"), the holding company for the subsidiaries in those countries.
Visegrad has duly exercised its option in accordance with the terms of this agreement, at a fixed exercise price of USD 40,000. Accordingly, it now holds 40 percent of IJCE. Intrum Justitia has provisioned SEK 3.8M in its 2002 accounts to cover that equity share of IJCE that will be transferred to Visegrad because of the option's exercise, and therefore, the transaction will exert no material impact on the consolidated accounts. Visegrad's equity participation will be reported as a minority interest in Intrum Justitia's consolidated accounts as of April 2003.
Visegrad also possesses the right to demand that 60 percent of IJCE's net profit is paid out to shareholders, and with its 40 percent holding, this confers Visegrad with the rights to 24 percent of net profits as dividends each year. Thus for the financial year 2002, the ensuing cash effect would have been approximately SEK 2M.
From 1 January 2004 to the year 2025, Intrum Justitia has the right, but not the obligation (call option), to acquire 20 percent of IJCE pursuant to a fixed valuation formula, also outlined in the aforementioned Offering Circular. If Intrum Justitia decides to exercise this call option, Visegrad possesses the corresponding right (put option) to sell the remaining 20 percent to Intrum Justitia.
For further information, please contact: Jan Roxendal, President and CEO Tel: +46 8 546 10 200 Anders Antonsson, Director of Communications Tel: +46 8 546 10 206 mobile: +46 703 36 78 18 E-mail: a.antonsson@se.intrum.com
Intrum Justitia is Europe's leading Receivables Management Services Group. The Group has revenues of SEK 2.8 billion and has about 2,700 employees in 21 European countries.
Intrum Justitia's objective is to be a leading provider of RMS in Europe through excellence in local client care, ledger administration and debt collection and by measurably improving clients' cash flow and long-term profitability. The Group offers efficient high quality management of commercial and consumer receivables in all phases in the RMS process. Intrum Justitia has a growth strategy and aims to take active part in consolidating its industry. Intrum Justitia is listed on Stockholmsborsen, the Stockholm Exchange, ticker IJ. For more information, please visit www.intrum.com
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