Comment from Nordic Capital regarding Intrum Justitia and Lindorff

DECEMBER 12 2016

Following communication from certain Intrum Justitia shareholders regarding their position on the proposed combination, Nordic Capital would like to provide the following comments:

On November 13, Nordic Capital Fund VIII entered into an agreement to combine Intrum Justitia and Lindorff. The agreement was the result of extensive negotiations and analysis, as well as mutual due diligence of both companies. The agreement was unanimously recommended by the Board of Directors of Intrum Justitia and remains subject to shareholder approval at an extraordinary general meeting on December 14.

Certain Intrum Justitia shareholders have raised questions regarding certain terms of the proposed combination that they have wished to discuss with Nordic Capital directly. In these discussions it has become clear that all parties are in agreement regarding the strong industrial logic of the proposed combination.

"In discussions with SEB Funds, AMF Pension and Lannebo Funds, Nordic Capital discussed in detail the respective views on the relative valuations of the two businesses. Contrary to certain recent media coverage, these are within a few percentage points from where the Board of Intrum Justitia entered into an agreement with Nordic Capital. Nordic Capital continues to be prepared to engage with them to bridge the narrow difference in valuation views. It would be regrettable if a transaction that would create significant value for all shareholders through the generation of SEK 0.8bn of synergies resulting in an EPS growth of at least 75% in 3-4 years were to fall through," says Kristoffer Melinder, Managing Partner, NC Advisory AB, advisor to the Nordic Capital Funds.

Kristoffer Melinder continues:
"A large number of shareholders, both Swedish and international, have stated their strong support for the proposed transaction. International proxy advisors ISS and Glass Lewis have also recommended their clients to vote in favour of the combination. We remain open for discussions, but the decision rests with the relevant Intrum Justitia shareholders at this time."


Press contact:
Katarina Janerud, Communication Manager,
NC Advisory AB, advisor to the Nordic Capital funds
Tel: +46 8 440 50 69
e-mail: katarina.janerud@nordiccapital.com

About Nordic Capital
Nordic Capital private equity funds have invested in mid-market companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital enables value creation in its investments. Nordic Capital Funds invest in companies in northern Europe and in selected investment opportunities internationally. The most recent fund is Nordic Capital Fund VIII with EUR 3.5 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Funds are based in Jersey, Channel Islands, and are advised by the NC Advisory companies in Sweden, Denmark, Finland, Norway, Germany and the UK. For further information about Nordic Capital please see www.nordiccapital.com