05/05/2021 | Press release | Distributed by Public on 05/05/2021 06:29
SkiStar has entered an agreement to sell its 68 percent stake in the Austrian ski resort St. Johanner Bergbahnen GmbH (St. Johann) to Austrian company HS.-Beteiligungen GesmbH, which is part of the family-owned Schultz Gruppe (the Transaction). As part of the Transaction, SkiStar will receive EUR 15 million as payment on the EUR 19.5 million shareholder loan made to St. Johann and a cash consideration of EUR 2. The divestment is estimated to have a negative impact on earnings of SEK 110 million, of which SEK +13 million refers to accumulated exchange rate differences. However, the final impact on earnings depends on the exchange rate applicable upon completion of the Transaction.
The Transaction is subject to regulatory approval in Austria as well as approvals from the Board of Directors, auditor and other shareholders in St. Johann in accordance with Austrian regulations. The parties intend to complete the Transaction as soon as possible after receiving the required approvals with completion expected before the end of SkiStar's financial year on 31 August.
SkiStar acquired the majority share in St. Johann in 2016 for EUR 10 million with the aim of establishing a ski resort in continental Europe to complement the Scandinavian destinations. The decision to divest the Austrian operations is part of the strategy previously announced by SkiStar to place more focus on the Scandinavian market in the coming years considering changes in travel habits and holiday trends.
'St. Johann has developed well in recent years,' said CEO Stefan Sjöstrand. 'It's a business that is healthier today than it was when we acquired the majority stake in the company nearly five years ago. We are now focusing our investments and initiatives on Norway and Sweden to further develop both operations and profitability in our home market. This will strengthen our position as the leading Scandinavian holiday organiser. Alpine skiing is and will always be in SkiStar's DNA, while our new summer initiative, focus on sustainability and digitalisation, which we further developed over the course of the coronavirus pandemic, are some examples of improvements with particularly good results.'
St. Johann in Tirol is in the Austrian Tyrol, 125 km from Munich and 95 km from Innsbruck. The company's sales totalled SEK 91 million in the 2019/20 financial year, corresponding to approximately three percent of SkiStar's total sales.
This information is information that SkiStar AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 5 May 2021, 2.00p.m. CEST.
Further information can be reached from:
Stefan Sjöstrand, CEO, tel +46 (0)280 84160.
Anders Örnulf, CFO, tel +46 (0)280 84160.
SkiStar in brief:
SkiStar is listed on the Nasdaq Mid Cap, Stockholm. The Group owns and operates alpine destinations in Sälen, Åre, Vemdalen and Hammarbybacken (Stockholm) in Sweden, Hemsedal and Trysil in Norway and St. Johann in Tirol in Austria. Market share is 53% in Sweden, 29% in Norway and 43% in Scandinavia. The Group's core business is alpine skiing, with a focus on the guests' overall skiing experience. Operations are divided into two segments; Operation of Ski Resorts and Property Development & Exploitation. For further information, please visit www.skistar.com/en/corporate.