Sweden's Investment Latour to buy into EV charging firm Ctek under imminent IPO

Family-controlled Swedish company Investment AB Latour (STO:LATO-B) said on Tuesday that it has agreed to pay SEK 1.05 billion (USD 123m/EUR 103m) for a 31% stake in domestic battery and electric vehicle (EV) charging solutions manufacturer Ctek AB, as part of the company's newly-unveiled initial public offering (IPO) later in September.

Latour, which is majority-owned by the family of billionaire Gustaf Douglas, will pay SEK 69 per share in Ctek.

The deal will imply a post-money valuation of SEK 3.4 billion for the whole business, Ctek said separately in its IPO announcement.

The offering on Nasdaq Stockholm will consist both of newly issued shares in Ctek as well as stock sold by current shareholders. Ctek's main backer is Swedish buyout firm Altor Equity Partners. The transaction depends on market conditions and a prospectus is yet to be published, the company added.

Ctek claims to be Sweden's second-largest supplier of electric vehicle supply equipment (EVSE), or charging stations. It also makes p12V and 24V battery chargers. In the first half of 2021, the battery charging manufacturer booked a 56% year-on-year increase in revenue to SEK 455.4 million. Adjusted earnings before interest, taxation and amortisation (EBITA) almost tripled to SEK 104.7 million compared to the same period in 2020.

Ctek also said it is targeting annual sales of SEK 2 billion per year in the medium term, derived mainly from EV charging stations, as well as an adjusted EBITA margin of over 25%. It will aim to pay dividends of 30% of net earnings.

Carnegie Investment Bank is the sole global coordinator for the offering, acting as a joint bookrunner alongside Swedbank.

(SEK 10 = USD 1.167/EUR 0.983)

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