SWEDEN – EQT increases bid for Securitas Direct

Upon the completion of the offer, EQT V will buy out ESML Intressenter’s other shareholders on the basis of the new offer price.

Yesterday it was also announced that the acceptance period was extended until 19 February 2008. The initial deadline for the offer was set to the end of January when ESML Intressenter first announced the bid on November 13 2007.

For the original bid at SEK 26 per share, the consortium only gained acceptance for 54.1% of the share capital and 67.8% of the votes. The fourth AP fond, one of the larger owners in the business, reportedly declined the offer together with the board of directors.

The increased offer has unanimously been recommended by the independent committee of the directors of Secuiritas Direct. “The improved offer, in addition to the increased economic uncertainty, leads us to recommend the shareholders of Securitas Direct to accept the offer. We also note that SäkI, MSAB and Latour have decided to sell their shares to EQT on the basis of the increased offer price”, said Ulf Mattsson, chairman of the board of Securitas Direct and its independent committee.

Swedish analysts argued yesterday that it was not necessary to increase the bid since the valuation of the company has fallen due to the plunge in the public markets seen recently. However, the board of directors released a statement on 6 December 2007 in which they recommended shareholders and warrant holders to reject the offer since it did not reflect the true value of the business. It was argued that Securitas Direct had recently undergone strong growth by “acquiring” new customers, charged to the income statement, and thus the business should be valued higher.

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