Dovre Group Sells Consulting Businesses to NYAB AB Successfully
Dovre Group Advances with Strategic Business Sale
Dovre Group has recently completed the strategically significant sale of its Project Personnel and Norwegian consulting businesses to NYAB AB. This deal aligns with a share sale and purchase agreement established on an earlier date, reflecting Dovre Group's ongoing commitment to optimize its operational footprint.
Financial Highlights and Implications
The completion of this transaction saw Dovre Group receiving a preliminary purchase price of approximately 35.3 MEUR. This figure is derived from estimating the EBIT for the fiscal year 2024 at 4.3 MEUR, multiplied by a factor of 7, along with adjustments for net cash and the working capital position as of the end of December 2024. The transaction was structured to enhance financial viability and operational efficiency for Dovre Group.
Allocation of Funds
Out of the initial purchase price, Dovre Group secured around 28.2 MEUR in cash following the sale's completion. Additionally, 7.1 MEUR has been held in an escrow account as a security measure. This is intended to ensure the fulfillment of any future obligations related to the final purchase price, which is forecasted to be defined in the early part of the following year, based on actual financial performance metrics. Dovre Group anticipates that the final price will not significantly stray from the preliminary estimate provided.
Impact on Business Guidance
It’s noteworthy that the adjustments arising from this sale will not affect Dovre Group's operational guidance for 2024, a projection focused solely on its retained business sectors. This strategic decision showcases their solid planning and foresight in managing business alterations.
Classification and Reporting of Sold Units
The businesses that have been auctioned off are categorized as assets held for sale. According to IFRS 5 regulations, the outcomes from this sale will be documented distinctly in financial reports, ensuring transparency and clarity when presenting results from ongoing operations juxtaposed with those of sold entities.
About Dovre Group
Dovre Group is recognized as a leading provider in the realm of renewable energy project development, focusing on construction projects across various sectors including wind, solar, and battery energy storage systems, primarily in the Nordic regions. The group comprises specialized firms like Suvic Oy and Renetec Oy, with Proha Oy contributing project management software services and eSite offering innovative industrial virtual reality solutions.
Future Growth Potential
For the year ahead, Dovre Group is anticipating sales figures in the range of 88–93 MEUR, supported by a dedicated workforce of around 200 professionals. This indicates not only resilience but also an ongoing commitment to growth within the renewable energy landscape, making it a pivotal player in the industry.
Contact Information
For further information, individuals are encouraged to reach out to:
Dovre Group Plc
Sanna Outa-Ollila, Acting CEO
Tel. +358 20 436 2000
Email: sanna.outa-ollila@dovregroup.com
Frequently Asked Questions
What was the purpose of Dovre Group's recent sale?
The sale aimed to optimize Dovre Group's operations by divesting from its Project Personnel and Norwegian consulting businesses.
How much was the initial purchase price for the sale?
The preliminary purchase price was approximately 35.3 MEUR.
What will the final purchase price be based on?
The final price will be based on actual adjusted EBIT, net cash, and working capital positions as of the end of December 2024.
Will the sale impact Dovre Group's business guidance for 2024?
No, the sale will not affect Dovre Group's guidance for 2024, as it pertains only to the retained businesses.
What is Dovre Group's focus in the renewable energy sector?
Dovre Group focuses on project development and construction projects in wind, solar, and battery energy storage systems across the Nordic countries.
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