News

Oslo, Saturday, January 1, 2000
Stock Exchange Notification
BLOM SECURES GREATER GEOGRAPHICAL COVERAGE IN SOUTHERN EUROPE

Blom has entered into an agreement to acquire 100 per cent of the shares in Compagnia Generale Ripreseaeree S.p.A (CGR), the definitively largest company within airborne collection, processing, and is a private owner of mapping data in Italy. CGR has a turnover of approximately NOK 150 million and in recent years has had an EBITDA of approximately NOK 23 million. The company owns and operates a total of 10 aircraft that are permanently equipped with state-of-the art technology for the collection of mapping data. The company has also entered into an agreement with Pictometry in the USA, giving it the right to use this technology in Italy and has mapped large parts of Italy by means of the new technology. The company employs more than 150 people altogether.

The consideration for 100 per cent of the shares will be EUR 20 million, EUR 17 million (NOK 133 million) of which is in cash and EUR 3 million (NOK 23 million) will be settled through a private placement with the seller, representing 792,000 shares in Blom. The subscription price is agreed at NOK 29.60 per share and the extension of capital makes up 2.51 per cent of the share capital.

With the acquisition of CGR, the leading company within its field in Southern Europe, Blom is now establishing itself as the company with the definitively broadest geographical coverage in Europe within the collection and processing of airborne mapping data. CGR is focussed on high technology products while at the same time the company was the first to offer web-based maps and photos from its own library (www.terraitaly.it/).

With CGR, Blom is amplifying the range of its activities making possible significant synergy for the other companies of the Blom group.

By the end of October, after having completed a due diligence, Blom will remove all reservations regarding the acquisition of the company. It has been agreed that the final settlement will take place on 1 November, which will be the date when the company will be consolidated into the Blom Group’s accounts. The cash part (NOK 133 million) of the acquisition amount will be covered by financing schemes that are already established.




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