On 13 August 2007, KappAhl Holding AB published an offer to Lindex's shareholders to acquire all outstanding shares in Lindex, for payment in cash, at a price of SEK 102 per share.
In its statement on 22 August, The Board of Directors recommended that Lindex's shareholders should not accept KappAhl's offer as the Board of Directors is of the opinion that the offer of SEK 102 per share does not reflect the full value of the company.
The Board of Directors will propose an Extraordinary General Meeting to initiate a recapitalisation whereby shareholders are allocated SEK 3 billion, equivalent to approximately SEK 44 per share, in cash and listed bonds.
The recommendation of the Board of Directors' is mainly based on the following considerations: • The strategic decisions made by Lindex just over two years ago have been successful. • Lindex's repositioning on the market, and the streamlining of the organisation and flow of goods have resulted in rising margins. • The business in Germany has been closed down. • Excluding Germany, the EBITA margin during the fourth quarter is expected to exceed 14 percent. • Excluding Germany, the total sales during the fourth quarter are expected to increase by 10 per cent and sales in like-to-like stores is expected to increase by 7 per cent. • The gross margin for the fourth quarter, excluding Germany, is expected to exceed last year's levels. • A strong platform for increased profitability and growth has subsequently been built.
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