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Stock exchange release - 17 March 2006

CapMan exits from Mehiläinen –
Finnventure Fund V moves closer to carry

CapMan funds Finnventure V and Finnmezzanine III will realise their investment in Mehiläinen Oyj. The funds will sell their holding in the company to H-Careholding AB, which owns the Swedish health care company Carema Vård och Omsorg AB. The consideration offered values the equity of Mehiläinen at MEUR 152 and prior to the exit the funds’ have an approx. 47% stake in the company. The transaction requires the approval of the competition authorities. As a result of the exit, Finnventure Fund V moves closer to carry. The distribution of profits requires that a hurdle rate, which is calculated for the period that the committed capital has been invested, has been returned to investors. The exit does not have significant earnings impact on CapMan’s result for 2006.

Finnventure Fund V has a fund size of MEUR 169.9. The amount of capital that has been returned to the fund’s investors will increase to approx. MEUR 170 as a result of the exit from Mehiläinen. Following the realisation, the remaining portfolio of Finnventure Fund V at fair value is approx. MEUR 78 as per valuations at 31 December 2005. It is estimated that the fund will begin to generate carried interest during 2007. The investment in Mehiläinen has been very good for the investors in the exiting funds.

 

Finnventure Fund V invested in Mehiläinen in December 2000, Sitra in January 2001 and Finnmezzanine Fund III in 2003. During the period of CapMan’s investment, Mehiläinen has grown into Finland’s leading producer of private health care services. The nationwide chain operates through 7 hospitals, 17 full service private clinics, 18 occupational health care centres and an elderly people’s home.Net sales have increased from MEUR 39.5 to MEUR 97.4 and operating income from MEUR 3.2 to MEUR 8.4.

 

”We are very pleased with the transaction that has been announced today. The transaction enables mutual exploitation of the strengths and special know-how of both companies. As a result of today’s closing, the united entity will form a leading player on the Nordic private health care market,” states CapMan’s Senior Partner Tuomas Lang, who is also the Chairman of Mehiläinen. ”The new owner has good resources to continue the development of Mehiläinen’s business and the strengthening of its position as the market leader in Finland.”

 

H-Careholding AB will make a tender offer to the minority shareholders in the company for Mehiläinen’s shares. The terms of the offer and Mehiläinen’s views are described in more detail in the bulletin published by Carema and Mehiläinen today.

 

Alfred Berg ABN AMRO acted as financial adviser and Roschier Holmberg Attorneys Ltd as legal adviser to CapMan, the other sellers and Mehiläinen.


 

Press conference:

A press conference on the transaction will be held for the media and analysts at 10.30 a.m. today, 17 March 2006 in the premises of Hotel Scandic Simonkenttä Helsinki. Tuomas Lang, Senior Partner of CapMan, Heikki Westerlund, CEO of CapMan, Matti Bergendahl, CEO of Mehiläinen and Peter Weiderman, Chairman of Carema will be present at the event.

 

time                  10.30 a.m. today, Friday 17 March 2006

place                Hotel Scandic Simonkenttä, Simonkatu 9, Helsinki

 

 

For further information, please contact:

Tuomas Lang, Senior Partner, CapMan Buyout, tel. +358 40 545 1240

 

 

CAPMAN PLC      


Jerome Bouix
Partner
Fundraising, IR & Communications    


Distribution
Helsinki Exchanges
Principal media

 

 

About the companies:

 

CapMan

CapMan is one of the leading private equity investors in the Nordic countries and specialises in middle market buyouts in various industry sectors, technology investments in the IT and communications sectors and investments in life science companies. In addition, CapMan manages private equity real estate funds. The CapMan team comprises around 90 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan manages Nordic funds with approx. EUR 2.2 billion in total capital. To date, the funds managed by CapMan have invested in 142 companies in the Nordic countries and exited from 80 companies. The latest investments are made in Finnish Flander Ltd, Danish ScanJour A/S, Swedish 42Networks AB and Norwegian InfoCare ASA. The portfolio of CapMan’s first private equity real estate fund consists of 18 commercial properties in the Helsinki metropolitan area. CapMan Plc is listed on the Main List of the Helsinki Stock Exchange. www.capman.com

 

Mehiläinen

Mehiläinen, founded in 1909, is a leading healthcare service provider in Finland. The turnover of Mehiläinen for 2005 stood at € 97.4 mill. Mehiläinen employs 1,050 people and there are 1,800 physicians working for the company. The nation-wide service network of Mehiläinen comprises 17 outpatient clinics, 7 hospitals, and occupational health care units. www.mehilainen.fi

 

Carema

Carema, founded in 1996, is a leading Nordic private healthcare services provider within the public sector. Carema provides primary care, specialist care, elderly care and care for the disabled. Carema has operations in Sweden, Finland and Norway. The company has 4,900 employees (full-time equivalents) and a pro forma turnover of €350m in 2005. www.carema.se