No. 6/2018
Copenhagen, 28 March 2018
The subsidiary Stockholms Auktionsverk AB has today entered into an agreement to sell the Fine Art Business based at the prominent premises in Nybrogatan in Stockholm including Stockholms Auktionsverk's brand and the 15 Fine Art specialists into a separate Company, with focus on the exclusive segment of the high-end Swedish and international auctioning world. The new company - Gelba Partners AB - is owned by Gelba Management AB (Per Taubes holding company) with 51% and by Stockholms Auktionsverk AB by 49%.
Stockholms Auktionsverk AB will change its name to Lauritz.com Sverige AB. Gelba Partners AB will change its name to Stockholms Auktionsverk AB.
The Fine Art Business is sold to Gelba Partners AB at a price of DKK 62.8 million (SEK 86.0 million), and will result in a gain impacting the EBITDA of the Group positively by approximately DKK 40 million. The sales price is paid partly in cash, earn out and shares.
It is agreed that the existing online auctions in Stockholms Auktionsverk will continue in this name until further notice however no longer than 2023.
Further it has been agreed that Gelba Partners AB will use the auction platform of Stockholms Auktionsverk AB (Lauritz.com Sverige AB) for the next 10 years, including payment of royalty for use of the platform.
Our future prospects for 2018 given in the Q4 report on 22 February 2018 was:
In 2018, the Group expects a small decrease in net revenue. The reduction is partly due to the negative impact on revenue from purchased/sold auction houses and due to not including any sale of partnership agreements, partly offset by a small increase in Auction Turnover.
EBITDA margin is expected to be between 20 and 25 percent.
Following today's transaction we update our future prospects for 2018 to:
In 2018, the Group expects a decrease in net revenue. The reduction is partly due to the negative impact on revenue from purchased/sold auction houses and due to not including any sale of partnership agreements. Due to the sale of Stockholms Auktionsverk's Fine Art business the revenue from fees and commission are expected to decrease by 10-15%. The EBITDA margin for 2018 is expected to be between 20 and 25 percent excluding the gain from the sale of the Fine Art business. Including the gain from the sale of the Fine Art business the EBITDA margin is expected to be between 35 and 40 percent.
Chairman Bengt Sundström, explains:
We are very happy to have found a strong and visionary partner in Per Taube. We believe in the expansion possibilities for Stockholms Auktionsverks Fine Art Business and we are of the opinion that this business area will benefit from being operated as a separate company under the special circumstances characterizing the Fine Art environment. At the same time the new structure enables Lauritz.com prioritize the development of the core business; to operate convenient online auctions within art, design and antiques in the price segment DKK 1,000 to 50,000.
Best regards
Lauritz.com Group A/S
Bengt Sundström
Chairman
For press enquiries, please contact:
Susanne Sandsberg Klubien
+45 26891909
E-mail press@lauritz.com
For other enquiries, please contact:
Bengt Sundström
Chairman
+45 20209800
Bengt@lauritz.com
Certified advisor: Erik Penser Bank, Stockholm
Market place: Nasdaq First North Stockholm
This information is information that Lauritz.com Group A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 17.15 pm CET on 28 March 2018.
