+49 40 39803 0

hamburg@mcfcorpfin.com

+358 9 6227 1890

helsinki@mcfcorpfin.com

+44 20 7968 2760

london@mcfcorpfin.com

+46 8 545 680 80

stockholm@mcfcorpfin.com
18 Aug 2021

MCF advises Boreo Plc on the contemplated combination with Sievi Capital Plc

The Boards of Directors of Boreo Plc (“Boreo”) and Sievi Capital Plc (“Sievi”) have signed a letter of intent, pursuant to which the parties are looking into a potential combination between Boreo and Sievi. As a result of the potential combination, the Future Company would be well placed for growth in Northern Europe by virtue of its strong financial position and its independent, strong businesses. MCF acted as the financial adviser to Boreo, supporting the client in the transaction planning and negotiations.

MCF acted as the financial adviser to Boreo, supporting the client in the transaction planning and negotiations.

The Deal

The Future Company’s name would be Boreo Plc and it would continue its business in accordance with Boreo’s current operating model as a group. This would mean changing Sievi’s investment company operating model and consolidating its portfolio companies into the Future Company in reporting.

The Future Company would create one of the leading growth platforms for small and medium-sized companies in Helsinki Stock Exchange, with well diversified business operations among various industries and markets in the Northern Europe. In 2020, the initial estimate of the combined IFRS turnover of Boreo and Sievi, including Sievi’s portfolio companies, is approx. EUR 474m and EBITDA approx. EUR 62m. The companies have close to 1,700 employees.

The market cap of Boreo was EUR 304m on 17 August 2021, whilst Sievi’s market cap was EUR 119m. The combination would give 60% of the combined entity to current Boreo shareholders and 40% to Sievi shareholders. On a 3-month VWAP basis, the premium paid for Sievi is 16.8%.

Disclaimer

The purpose of the signed letter of intent is to allow the parties to assess the possible combination and its specific conditions, but it does not obligate the parties to complete the merger or any other arrangement.

The completion of the Contemplated Combination requires, among other things, that mutual due diligence reviews are conducted and accepted and the parties reach an agreement on the legal procedure of completing the Contemplated Combination and the related combination agreement and other transaction agreements.

About Boreo Plc

Boreo, a company listed on the Helsinki Stock Exchange, creates value by owning, acquiring and developing B2B businesses in Northern Europe. Boreo’s operations are organised into three Business Areas: Electronics, Technical Trade and Heavy Machines. Boreo’s main objective is to create shareholder value in the long-term by growing via acquisitions, creating optimal conditions for its businesses to grow sales and earnings sustainably and by being a best-in-class home for its companies and people.

About Sievi Capital Plc

Sievi Capital is a Helsinki Stock Exchange listed private equity investment company that invests in unlisted small and medium-sized Finnish companies. Sievi supports growth, performance and value creation of small and medium-sized companies and concurrently builds national competitiveness.

Get in touch

Jussi Vuorinen

Helsinki