Bure’s holding of shares in MedCap AB

Bure Equity AB (publ) has divested 1,500,000 shares in MedCap AB and thereafter holds 9.84 per cent of the capital and the votes.

MedCap AB is listed on Nasdaq Stockholm. Bure’s holding of shares in MedCap consists of 1,456,017 shares which is equivalent to 9.84 per cent of the total number of shares and votes in the company.

Bure Equity AB (publ) publishes offer document with respect to the public cash offer to the shareholders of Allgon AB (publ)

This announcement is not an offer, whether directly or indirectly, in Australia, Canada, Hong Kong, Japan, New Zealand or South Africa or in any other jurisdiction where such offer pursuant to legislation and regulations in such relevant jurisdiction would be prohibited by applicable law. Shareholders not resident in Sweden who wish to accept the Offer (as defined below) must make inquiries concerning applicable legislation and possible tax consequences. Shareholders should refer to the offer restrictions included in the section titled “Important information” at the end of this announcement and in the offer document which will be published in connection with the announcement of the Offer. Shareholders in the United States should also refer to the section titled “Special notice to shareholders in the United States” at the end of this announcement.

On 22 December 2020 at 08:30 CET, Bure Equity AB (publ) (“Bure”) announced a public cash offer to the shareholders of Allgon AB (publ) (“Allgon”) to tender all their shares in Allgon to Bure (the “Offer”). The shareholders in Allgon are offered SEK 13.50 in cash per each share of series B[1] in Allgon (the “Offer Price”).[2] The shares of series B in Allgon are listed on Nasdaq First North Growth Market.

Today, Bure has published the offer document relating to the Offer. The offer document and the acceptance form are made available at Bure’s website www.bure.se/en/public-offer/ and at website of Avanza Bank AB (publ) (”Avanza Bank”) www.avanza.se/borsintroduktioner-emissioner. The offer document will only be available in Swedish.

The offer document and acceptance forms will be provided free of charge upon request. Such request may be made to Bure’s receiving agent, Avanza Bank, per email corpemissioner@avanza.se or per telephone +46 8 4094 2185.

The acceptance period of the Offer commences on 12 January 2021 and expires on 2 February 2021. Settlement is expected to commence on 11 February 2021, subject to the conditions for completion of the Offer having been fulfilled or Bure otherwise deciding to complete the Offer.

Bure reserves the right to extend the acceptance period as well as to postpone the date of settlement. Bure will announce any such extension of the acceptance period and/or postponement of the settlement by a press release in accordance with applicable laws and regulations.

Information about the Offer is made available at www.bure.se/en/public-offer/.

For additional information, please contact:
Henrik Blomquist, CEO

Tel: +46 708 24 44 74

Email: henrik.blomquist@bure.se

This information is such information that Bure Equity AB is obliged to publish in accordance with Takeover rules. The information was submitted for publication by the contact person stated above on 11 January 2021 at 08:30 CET.

Important information
This press release has been published in Swedish and English. In the event of any discrepancy in content between the two language versions, the Swedish version shall prevail.

The Offer is not being made, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand or South Africa by use of mail or any other communication means or instrumentality (including, without limitation, facsimile transmission, electronic mail, telex, telephone and the Internet) of interstate or foreign commerce, or of any facility of national securities exchange or other trading venue, of Australia, Canada, Hong Kong, Japan, New Zealand or South Africa, and the Offer cannot be accepted by any such use or by such means, instrumentality or facility of, in or from, Australia, Canada, Hong Kong, Japan, New Zealand or South Africa. Accordingly, this press release or any documentation relating to the Offer are not being and should not be sent, mailed or otherwise distributed or forwarded in or into Australia, Canada, Hong Kong, Japan, New Zealand or South Africa.

This press release is not being, and must not be, sent to shareholders with registered addresses in Australia, Canada, Hong Kong, Japan, New Zealand or South Africa. Banks, brokers, dealers and other nominees holding shares for persons in Australia, Canada, Hong Kong, Japan, New Zealand or South Africa must not forward this press release or any other document received in connection with the Offer to such persons.

The Offer, the information and documents contained in this press release are not being made and have not been approved by an authorized person for the purposes of section 21 of the UK Financial Services and Markets Act 2000 (the “FSMA”). Accordingly, the information and documents contained in this press release are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of the information and documents contained in this press release is exempt from the restriction on financial promotions under section 21 of the FSMA on the basis that it is a communication by or on behalf of a body corporate which relates to a transaction to acquire day to day control of the affairs of a body corporate; or to acquire 50 per cent or more of the voting shares in a body corporate, within article 62 of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.

Statements in this press release relating to future status or circumstances, including statements regarding future performance, growth and other trend projections and other benefits of the Offer, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as “anticipates”, “intends”, “expects”, “believes”, or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Bure. Any such forward-looking statements speak only as of the date on which they are made and Bure has no obligation (and undertakes no such obligation) to update or revise any of them, whether as a result of new information, future events or otherwise, except for in accordance with applicable laws and regulations.

Castlegreen Partners LLP is not responsible to anyone other than Bure for advice in connection with the Offer.

Special notice to shareholders in the United States
The Offer described in this press release is made for the issued and outstanding shares of Allgon, a company incorporated under Swedish law, and is subject to Swedish disclosure and procedural requirements, which may be different from those of the United States. The Offer is made in the United States pursuant to Section 14(e) of the U.S. Securities Exchange Act of 1934, as amended (the “U.S. Exchange Act”) and Regulation 14E thereunder, to the extent applicable, and otherwise in compliance with the disclosure and procedural requirements of Swedish law, including with respect to withdrawal rights, the Offer timetable, notices of extensions, announcements of results, settlement procedures (including as regards to the time when payment of the consideration is rendered) and waivers of conditions, which may be different from requirements or customary practices in relation to U.S. domestic tender offers. Holders of the shares of Allgon domiciled in the United States (the “U.S. Holders”) are encouraged to consult with their own advisors regarding the Offer.

Allgon’s financial statements and all financial information included herein, or any other documents relating to the Offer, have been or will be prepared in accordance with IFRS and may not be comparable to the financial statements or financial information of companies in the United States or other companies whose financial statements are prepared in accordance with U.S. generally accepted accounting principles. The Offer is made to the U.S. Holders on the same terms and conditions as those made to all other shareholders of Allgon to whom an offer is made. Any information documents, including the offer document, are being disseminated to U.S. Holders on a basis comparable to the method pursuant to which such documents are provided to Allgon’s other shareholders.

The Offer, which is subject to Swedish law, is being made to the U.S. Holders in accordance with the applicable U.S. securities laws, and applicable exemptions thereunder. To the extent the Offer is subject to U.S. securities laws, those laws only apply to U.S. Holders and thus will not give rise to claims on the part of any other person. The U.S. Holders should consider that the Offer Price is being paid in SEK and that no adjustment will be made based on any changes in the exchange rate.

It may be difficult for Allgon’s shareholders to enforce their rights and any claims they may have arising under the U.S. federal or state securities laws in connection with the Offer, since Allgon and Bure are located in countries other than the United States, and some or all of their officers and directors may be residents of countries other than the United States. Allgon’s shareholders may not be able to sue Allgon or Bure or their respective officers or directors in a non-U.S. court for violations of U.S. securities laws. Further, it may be difficult to compel Allgon or Bure and/or their respective affiliates to subject themselves to the jurisdiction or judgment of a U.S. court.

To the extent permissible under applicable law or regulations, Bure and its affiliates or its brokers and its brokers’ affiliates (acting as agents for Bure or its affiliates, as applicable) may from time to time and during the pendency of the Offer, and other than pursuant to the Offer, directly or indirectly purchase or arrange to purchase shares of Allgon outside the United States, or any securities that are convertible into, exchangeable for or exercisable for such shares. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices, and information about such purchases will be disclosed by means of a press release or other means reasonably calculated to inform U.S. Holders of such information. In addition, the financial advisors to Bure may also engage in ordinary course trading activities in securities of Allgon, which may include purchases or arrangements to purchase such securities as long as such purchases or arrangements are in compliance with the applicable law. Any information about such purchases will be announced in Swedish and in a non-binding English translation available to the U.S. Holders through relevant electronic media if, and to the extent, such announcement is required under applicable Swedish or U.S. law, rules or regulations.

The receipt of cash pursuant to the Offer by a U.S. Holder may be a taxable transaction for U.S. federal income tax purposes and under applicable U.S. state and local, as well as foreign and other, tax laws. Each shareholder is urged to consult an independent professional adviser regarding the tax consequences of accepting the Offer. Neither Bure nor any of its affiliates and their respective directors, officers, employees or agents or any other person acting on their behalf in connection with the Offer shall be responsible for any tax effects or liabilities resulting from acceptance of this Offer.

NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY U.S. STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THE OFFER, PASSED ANY COMMENTS UPON THE MERITS OR FAIRNESS OF THE OFFER, PASSED ANY COMMENT UPON THE ADEQUACY OR COMPLETENESS OF THIS PRESS RELEASE OR PASSED ANY COMMENT ON WHETHER THE CONTENT IN THIS PRESS RELEASE IS CORRECT OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE IN THE UNITED STATES.

[1] Shares of series B is the only outstanding share class in Allgon.
[2] Should Allgon distribute dividends or make any other distributions to its shareholders, for which the record date occurs prior to the settlement of the Offer, the Offer Price will be adjusted accordingly.

Interim report January-September 2020

  • Net asset value was SEK 230.6 per share compared to SEK 196.6 at the beginning of the year, corresponding to an increase of 17.3 per cent.
  • Bure’s net asset value was SEK 17,096M compared to SEK 13,563M at the beginning of the year.
  • Total return on the Bure share was 33.9 per cent compared to the SIX Return Index which increased 8.2 per cent.
  • Consolidated profit after tax amounted to SEK 2,536M (1,641). Earnings per share amounted to SEK 35.7 (23.8).

Third quarter 2020

  • Net asset value was SEK 230.6 per share compared to SEK 195.8 at the beginning of the quarter, corresponding to an increase of 17.7 per cent.
  • Bure purchased 137,000 shares for SEK 32.3M in Xvivo Perfusion’s directed share issue.
  • Bure Growth acquired 25,000 shares in Yubico for SEK 9.0M.

Subsequent events

  • Net asset value amounted to SEK 217.2 per share on 4 November 2020, corresponding to an increase of 10.4 per cent since the beginning of the year.
  • Bure Growth acquired 0.3 million shares in BioLamina for SEK 53.2M and increased its holding to 44.8 per cent.
  • Atle Investment Management signed an agreement on the acquisition of Humle Småbolagsfond and Humle Sverigefond.

Comments from the CEO

During the third quarter, the majority of our portfolio companies registered robust increases in value despite the ongoing pandemic, continued restrictions, and reduced economic activity. The listed portfolio increased in value by approximately SEK 2,500M, or 22 per cent. This increase was also reflected in Bure’s net asset value per share, which registered an overall increase of 17.7 per cent during the quarter.

The stock market’s recovery from the heavy losses of February and March continued into the third quarter. The Six Return Index increased 12.9 per cent, and in September – perhaps surprisingly – returned to the same high levels seen prior to the outbreak of corona.

During the quarter, portfolio company Xvivo Perfusion acquired Dutch company Organ Assist. Similar to Xvivo, Organ Assist is present in the transplant segment, although is primarily focused on organs such as kidneys and the liver. Xvivo currently has products and solutions for heart and lung transplants, and with the acquisition, it will be the first company in the world that has products in all the major organ groups. This transaction was partly financed by Xvivo making a directed rights issue totalling SEK 500M in which Bure invested around SEK 32M.

At the time of writing, we are seeing a considerable and partly unforeseen increase in the number of people infected with corona. This increase has, amongst other things, resulted in new restrictions and lockdowns in many large European cities. Unfortunately, this means that it is too early to say that we are past the worst and that we are returning to a normalised market situation. It is reasonable to assume that corona will continue to have a negative impact going forward. However, our portfolio companies have so far shown great skill in managing the crisis and thereby adapting to prevailing market conditions.

Bure Equity AB (publ)

Nominating committee for the 2021 annual general meeting in Bure

The Nominating Committee for the 2021 annual general meeting has been appointed. In accordance with a decision at the annual general meeting, the three largest shareholders or owner groups shall be given the opportunity to appoint a member to the Nominating Committee. The Board Chairman shall be a member of the Nominating Committee.

The following members have been appointed to Bure’s Nominating Committee:

Per Björkman, appointed by the Björkman family
Thomas Ehlin, appointed by Fjärde AP-fonden
Patrik Tigerschiöld, appointed by the Tigerschiöld family

The Chairman of the Board, Patrik Tigerschiöld, shall convene the first meeting of the Committee.

The Nominating Committee has been appointed according to the instructions from the Annual General Meeting in 2020. The members of the Nominating Committee together represent 36.7
per cent of the votes attached to all voting shares in the company.

The Annual General Meeting of Bure Equity AB will be held on 6 May 2021.

The tasks and responsibilities of the Nominating Committee are described on the website, www.bure.se

Shareholders who wish to recommend candidates for nomination can contact Bure’s Nominating Committee via e-mail: info@bure.se (“To the Nominating Committee”), or by mail to: Bure Equity AB, Att: Chairman of the Board, Nybrogatan 6, SE-114 34 Stockholm, no later than 31 January 2021.

Bure Equity AB (publ)

For more information contact:

Patrik Tigerschiöld, Chairman of the Board
Tel. +46 (0)8-614 00 20

Bure has resolved upon a directed share issue of 1,000 MSEK

Bure Equity AB (publ), (“Bure Equity” or the “Company”) has today, in accordance with the press releases published on 10 and 11 June 2020, by using the authorisation from the annual general meeting on 11 June 2020, resolved to carry out the directed share issue which will raise 1,000 MSEK in gross proceeds (the “Directed Share Issue”).

Through the Directed Share Issue, the Company’s share capital will increase by SEK 40,180,204 from SEK 535,518,034 to SEK 575,698,238 by new issue of 5,175,000 ordinary shares, resulting in the total number of shares increasing from 68,971,921 shares to 74,146,921 shares. The Directed Share Issue will result in a dilution of 7.0 per cent of the capital and 7.0 per cent of the votes for existing shareholders based on the total number of shares and votes in the Company after the Directed Share Issue. It is expected that investors in the Directed Share Issue will be delivered their shares around 22 June 2020.

Skandinaviska Enskilda Banken AB has been Sole Bookrunner in the Directed Share Issue and Kanter Advokatbyrå KB has been legal adviser to Bure.

The Tigerschiöld and Björkman families have confirmed their intentions to remain as long-term owners in Bure.

Important information

Publication, distribution or release of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in the Company in any jurisdiction, neither from Bure Equity nor from anyone else.

This announcement does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the new shares. Any investment decision in connection with the Directed Share Issue must be made on the basis of all publicly available information relating to the Company and the Company’s shares. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness.

This announcement does not constitute a recommendation concerning any investor’s option with respect to the Directed Share Issue. Each investor or prospective investor should conduct his, her or its own investigation, analysis and evaluation of the business and data described in this announcement and publicly available information. The price and value of securities can go down as well as up. Past performance is not a guide to future performance.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be published, distributed or released, directly or indirectly, in whole or in part, within or into the United States of America, Australia, Canada, Hong Kong, Israel, Japan, New Zeeland, South Africa, Switzerland or in any other jurisdiction where such publication, distribution or release of the information would not comply with applicable laws and regulations or would require prospectuses, registration or any other measures than those required by Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

This press release is not a prospectus for the purposes of Regulation 2017/1129 of the European parliament and of the council (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Bure Equity has not authorised any offer to the public of shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the Directed Share Issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.

This press release is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). This press release must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this press release relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Persons distributing this press release must satisfy themselves that it is lawful to do so.

This press release may contain forward-looking statements which reflect Bure Equity’s current view on future events and financial and operational development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”, “plan”, “estimate” and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements.

2020 ANNUAL GENERAL MEETING OF BURE EQUITY AB (PUBL)

The Annual General Meeting (AGM) of Bure Equity AB (publ) on 11 June 2020 dealt with the following items of business, among others:

Election of Board members
The AGM decided that the number of Board members shall be 6 (6). As Bure’s Board of Directors, the AGM re-elected sitting Board members Carl Björkman, Carsten Browall, Bengt Engström, Charlotta Falvin, Sarah McPhee and Patrik Tigerschiöld. Patrik Tigerschiöld was re-elected as Board Chairman.

Election of auditor
The AGM elected the auditing firm of Öhrlings PricewaterhouseCoopers AB as the company’s auditor to serve for the period until the 2021 AGM. Magnus Svensson Henryson was appointed Auditor in Charge.

Resolution regarding dividends
The AGM resolved to approve a cash dividend of SEK 1.00 as ordinary dividend. The record date was set for 15 June 2020, which means that the dividends are expected to be disbursed on 18 June 2020.

Principles for remuneration and other terms of employment for senior executives
The AGM approved the Board’s proposed principles for remuneration and other terms of employment for senior executives.

Authorization of the Board to decide on the repurchase of shares
The AGM authorized the Board of Directors, until the date of the 2021 AGM, to repurchase shares in order to adapt the company’s capital structure to the company’s capital requirements from time to time and thereby contribute to greater shareholder value. Following the repurchase, the company may hold no more than 10 per cent of all shares in the company.

Shares may be acquired through trading on Nasdaq Stockholm (“the stock exchange”), or in accordance with a tender offer to all of the company’s shareholders. Shares may be acquired during the period from 11 June 2020 until the next AGM. However, no shares will be acquired during a period of 30 days prior to the publication of a quarterly report, including the date of publication. Acquisitions on the stock exchange may take place only at a price per share that falls within the registered price interval at any given time. Payment for the shares shall be made in cash. Shares may be acquired on one or several occasions.

Bure Equity AB currently holds no treasury shares. The total number of shares in issue by Bure Equity AB currently amounts to 68,971,921. The maximum number of shares that can be repurchased is thus 6,897,192.

Authorization of the Board to decide on a new share issue
The AGM authorized the Board of Directors, prior to the 2021 AGM, on one or more occasions, to decide on the issue of shares, with or without deviating from the shareholders' preferential rights. Shares may be issued against cash payment, offset, or transfer of contingent property or with other conditions referred to in chapter 13, paragraph five, section 6 of the Swedish Companies Act. Furthermore, the Board has the right to determine the terms of an issue. The issue price shall be determined by market conditions and the number of newly issued shares may not exceed ten per cent of the number of outstanding shares on the date of this notice.

The reason for deviating from the right of pre-emption and the right to decide on offsets, in kind or other conditions referred to in the Companies Act is that the Company should be able to issue shares in order to continuously adjust the Company's capital structure to match the Company's capital needs and thereby contribute to increased shareholder value.

Amendment of the Company’s Articles of Association
AGM decided to amend the Company’s Articles of Association. According to a proposed amendment to the Swedish Companies Act, the record date for a general meeting of listed companies applies six business days before the AGM. It is proposed that the amendment enters into force on September 3, 2020. The Board therefore decided to amend the corresponding provision in the Company’s Articles of Association. Furthermore, the AGM decided upon some editorial changes due to changes already made to the law. The new wording is shown below.

§ 1 Company name

The Company's corporate name is Bure Equity AB (publ.). The Company is publicly listed.

§ 9 (ii) Notification of, and the right to attend the AGM

Shareholders who wish to participate in discussions at the AGM must submit a notification to the Company no later than 12pm on the date stated in the notice of the AGM. This day must not fall on a Sunday, any other public holiday, Saturday, Midsummer's Eve, Christmas Eve or New Year's Eve, and not later than five working days before the AGM.

§ 11, Reconciliation company

The Company's shares must be registered in a reconciliation register in accordance with the Swedish Companies Act (1998: 1479) on central securities depositories and the accounting of financial instruments.

Exercise of repurchase authorization
At the statutory meeting following the AGM, the Board decided to exercise this authorization. This decision means that repurchases can be initiated during the year.

BURE AQUIRES SHARES IN CAVOTEC

Bure Equity AB (publ) has acquired 7,803,248 shares in Cavotec SA and thereafter holds 36.2 percent of the capital and the votes in the company.

 
Bure has acquired 7,803,248 shares in Cavotec on 8 May 2020. After the transaction, Bure’s total holding in Cavotec amounts to 34,071,619 shares which is equivalent to 36.2 percent of the total number of shares and votes in the company. Cavotec is listed on Nasdaq Stockholm. The mandatory provisions in accordance with the Act on public takeover bids in the stock market do not apply as Cavotec is a Swiss company.

Interim report January-March 2020

  • Net asset value was SEK 146.7 per share compared to SEK 196.6 at the beginning of the year, which corresponds to a decrease of 25.4 per cent.
  • Bure’s net asset value was SEK 10,117M compared to SEK 13,563M at the beginning of the year.
  • Total return on the Bure share was -25.8 per cent compared to the SIX Return Index which fell 18.2 per cent.
  • Consolidated profit after tax amounted to SEK -3,460M (1,919). Earnings per share amounted to SEK -50.2 (27.8).
  • Bure acquired 0.65 million shares in Cavotec for SEK 11.2M, increasing its holding to 27.8 per cent.

Subsequent events

  • Net asset value amounted to SEK 180.8 per share on 27 April 2020, which corresponds to a decrease of 8.1 per cent since the beginning of the year.
  • In April, Bure acquired 1.2 million shares in Mentice for SEK 51.7M, increasing its holding to 15.1 per cent.

Comments from the CEO

The Covid-19 epidemic threw much of the western world into crisis during the quarter. Many countries shut their borders as well as schools, universities, and workplaces. Large numbers of people were forbidden from going out or were encouraged not to leave their homes. Such measures created a dramatic step-change for financial markets all over the world. Following a strong start to the year in January, with many stocks achieving all-time-high valuations, the SIX RX fell 18 per cent during the quarter.

Bure’s net asset value was also negatively affected during the period as all listed portfolio companies were hit by the fall in the market. Net asset value per share fell 25 per cent to SEK 146.7 per share at the end of March. The decrease in net asset value of some SEK 3.4 billion is entirely due to falls in share prices of listed portfolio companies. It is therefore with some relief that we have seen a recovery in share valuations in April.

In addition to stock market falls, the day-to-day economic consequences of the epidemic are likely to be considerable for many. Lost income and a fixed cost base is a challenging combination. The majority of Bure’s portfolio companies have global market positions and their products typically have a high technological content, which increases the likelihood that potential income losses will be more a case of income delays. Demand for these types of products and services should recover once the spread of the virus has been contained.

Furthermore, Bure has adopted a conservative view of financial risk for many years, which has resulted in portfolio companies being generally well-capitalised.

Initially, drastic measures may be needed to adapt the businesses to the new conditions they face. As owners, it is also important to look ahead. Crises do not last forever. My ambition is that Bure can help the portfolio companies to be proactive, maintain perspective, think long-term, and ensure that this crisis makes them stronger.

Bure Equity AB (publ)

Bure postpones the Annual General Meeting

Due to the great uncertainty caused by the extensive dissemination of covid-19, Bure's Board of Directors has decided to postpone the Annual General Meeting to a later date.

The Annual General Meeting was originally scheduled to be held on May 6, 2020 at the IVA Conference Center, Wallenbergsalen, Grev Turegatan 16, Stockholm.

Bure will returns with a notice to the AGM no later than four weeks before the new date. The Board's previously announced dividend proposal may be revised in connection with this. The meeting will be held in accordance with current legislation.

Bure Equity AB (publ)

Year-end report January-December 2019

Total return on the Bure share was 97.9 per cent

January – December 2019

  • Net asset value was SEK 196.6 per share compared to SEK 137.1 at the beginning of the year, which corresponds to an increase of 43.5 per cent.
  • Bure’s net asset value was SEK 13,563M compared to SEK 9,454M at the beginning of the year.
  • Total return on the Bure share was 97.9 per cent compared to the SIX Return Index that increased 35.0 per cent.
  • Consolidated profit after tax amounted to SEK 4,229M (1,821). Earnings per share amounted to SEK 61.3 (26.3).

Fourth quarter 2019

  • Net asset value per share was SEK 196.6 compared to SEK 159.2 at the start of the quarter, which corresponds to an increase of 23.5 per cent.
  • Bure divested shares in Mercuri to the company’s management team at book value which corresponds to reported net asset value. Mercuri also acquired ProSales, a leading Swedish research and consultancy firm specialising in B2B sales training. In conjunction with this transaction, the ProSales management team acquired new-issue shares in Mercuri. Bure’s holding in Mercuri amounted to 90.4 per cent following these transactions.
  • Bure Growth acquired additional shares in ScandiNova Systems for SEK 10M increasing its holding to 27.8 per cent.

Subsequent events

  • Net asset value amounted to SEK 187.5 per share on 19 February 2020 which corresponds to a decrease of 4.7 per cent since the beginning of the year.
  • The Board of Directors proposes that the Annual General Meeting approve an ordinary dividend of SEK 2.00 per share (2.00) and an extra dividend of SEK 0.50 per share (0.00).

Comments from the CEO

2019 was another successful year for Bure. Net asset value per share increased 43.5 per cent to end the year at around SEK 13.5 billion. Despite economic uncertainty, the majority of our portfolio companies achieved sales growth and improvements in profitability. Bure’s two largest holdings, Mycronic and Vitrolife, accounted for the two single largest increases in net asset value in 2019, which is fantastic. The unlisted segment of the portfolio also contributed to net asset value growth during the year. Our holding in cyber security company Yubico was Bure’s third largest holding at the end of the year following a revaluation under IFRS 9.

The year included several changes to the portfolio. Firstly, Cavotec and Ovzon conducted rights issues in which Bure increased its holding. During the first quarter, we also launched a new focus on active asset management under the new-old name Atle. Today, Atle is part-owner of a number of successful asset management funds and was, for example, involved in the launch of the year’s perhaps most high-profile fund, TIN Fonder. In the beginning of March, a modest amount of our holding in Mycronic and Vitrolife was divested. This was done to create financial scope for new investments. During the second quarter, we invested in two exciting growth companies. Bure was a so-called anchor investor for the stock market listing of Mentice and acquired a large minority holding in Scandinova.

Similar to the previous year, 2019 ended in dramatic fashion. But in contrast to the steep falls we experienced in 2018, the stock market jumped a record 10 per cent in the fourth quarter of 2019. Bure’s share price increased 47.2 per cent in the last quarter alone, which resulted in a total return for the year of 97.9 per cent. Naturally, this is extremely reassuring, and taken together with growth in net asset value, I believe this reinforces our conviction that a long-term approach, presence in and commitment to the portfolio companies ensures that Bure is a good owner.

Bure Equity AB (publ)