VBG welcomes Hexagon´s proposal to distribute the VBG shareholding to its owners

At the AGM the Hexagon board will propose that the company should distribute its shareholding in VBG AB to the Hexagon shareholders.

– This procedure would be beneficial for VBG AB and our present shareholders. It would increase the liquidity of the share, which facilitates its valuation.   Thus our possibilities to realize the new acquisitive strategy will increase, if a need should arise to ask the stock market for capital injection, says Anders Birgersson, President and CEO of VBG AB.

The VBG Group is the world´s leading supplier of trailer couplings for heavy goods vehicles. With the brands VBG and RINGFEDER the company enjoys a market share of the Nordic market of approx 95% and a global market share of more than 50%.

The VBG share is registered on the Stockholm Stock Exchange but has a low liquidity. During last autumn the company therefore appointed Remium Securites as liquidity provider to handle the share. And now Hexagon is proposing to distribute the complete VBG shareholding to the Hexagon shareholders. The holding is equivalent to 41,0 % of the equity and 23,9 % of the votes.

A welcome proposal
– We welcome this proposal by the Hexagon board, says Anders Birgersson. It is well timed as our new strategy is based on growth, organic as well as through acquisitions. This requires an interest in the share, which liquidity has been a problem for several years. Now it can be multiplied all at once.

The VBG Group is actively looking for acquisition candidates in product niches of the truck equipment market. The group strategy is to work in line of businesses and/or niches where it already has, alternatively can achieve, a leading position.

Well prepared for acquisition
– With an equity ratio of more than 60% we are already well prepared for acquisitions claims Anders Birgersson and we have re-purchased a large number of shares to be able to act quickly. But an increased liquidity of the share is necessary if later we should need to seek additional capital contribution through a new share issue.

For more information:
Anders Birgersson, President and CEO
Telephone: 0521-27 77 67, mobile 0702-27 77 78, e-mail: abi@vbgab.com

About VBG AB
VBG AB in Vänersborg is the parent company of an international engineering Group with production facilities in Sweden and Germany and sales companies in Norway, Denmark, France and the US. The business is concentrated on Truck Equipment and an additional business area of Machine Element.

The VBG B-share has been registered on the Stockholm Stock Exchange since 1987.  
Group turnover 2003 amounted to MSEK 530 and average number of employees to 301.

www.vbgab.com