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Framfab and Icon to merge

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11:14 CET+01:00
Two icons of the former internet bubble, Framfab AB and LB Icon AB said they are to merge via the absorption of Icon into Framfab.

Each Icon share will be exchanged for 50 new shares in Framfab.

The companies said both boards have unanimously agreed the 'joint merger plan'.

"A merger between Framfab and Icon creates a group with a greater critical mass and stronger strategic position in relation to both customers and capital markets," they said.

The new company will have combined sales of 1.5 billion kronor, with 1,200 employees in 10 countries.

The merger is expected to create annual synergies of approximately 20 million kronor per year with full effect in 2007.

Icon is currently listed on the Euronext in Amsterdam, and Framab on the O list in Stockholm. The merged company will be traded on both exchanges.

The name of the new company has yet to be decided.

Before the merger is implemented Framfab will execute a reverse share split at a ratio of 50:1 following its extraodinary general meeting. Each Icon share will then be be exchanged for 1 new share in Framfab.

AFP

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