Bong withdraws from Stronghold take-over and cancels plans for rights issue

In view of the information and press releases published earlier this year concerning the letter of intent and planned rights issue (January 24 2001), Bong wishes to provide the following information:

On January 24, 2001, Bong signed a letter of intent to acquire the Stronghold Group, Holland’s leading envelope company. The acquisition was conditional on customary due diligence proceedings being satisfactorily completed, and the take-over agreement was expected to be signed around the end of March 2001. Assuming completion of the Stronghold acquisition and with the object of maintaining a high degree of financial flexibility after completion of the acquisition, the Board of Bong Ljungdahl decided on February 28 to propose that an Extraordinary General Meeting be held to approve the rights issue.

As the negotiations could not be brought to a conclusion on terms mutually acceptable, the parties have decided not to go ahead with the transaction.

As the object of the rights issue was to finance the planned acquisition, the Board herewith withdraws its issue decision of February 28 and the notice convening the Extraordinary General Meeting on March 28.

Bong’s acquisition-based growth strategy remains firm. The company’s vision for the next few years is to strengthen Bong’s position of leadership on the European envelope market, and to raise its market share to above 30 per cent, which corresponds to annual sales of some SEK 5-6 billion. With this in mind, Bong is currently evaluating a number of other acquisition prospects.

Kristianstad in March, 2001
Bong Ljungdahl AB (publ.)
Board

For further information, please contact Lennart Pihl, President and CEO
Telephone: +46 44 20 70 50 or mobile: +46 70 594 68 66

Bong is a fast expanding international envelope company. The Group has an annual turnover of some MSEK 2,500 and around 1,900 employees. It has an annual production of some 16 billion envelopes at factories in Sweden, Denmark, Norway, Finland, Germany, Great Britain, Ireland, Belgium, Poland and Estonia. In recent years, Bong has played an active part in the current process of restructuring in the European envelope industry and sees significant potential for further expansion and development. Bong is a public company and its shares are listed on the OM Stockholm Stock Exchange’s Attract 40 list.

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