Fosnavåg, 6 December 2023

Eqva ASA (OSE: EQVA) ("Eqva") and LOS Group have signed a letter of intent for a
business combination agreement. 

The agreement includes the LOS Group's 100 percent ownership in LOS Elektro AS
and LOS Eiendom Bergen AS, as well as 51 percent ownership in LOS Cable
Solutions AS and 53,3 percent ownership in Zinus AS. The anticipated completion
of the business combination agreement is set for Q1 2024. The agreement is
subject to completion of due diligence with satisfactory result for Eqva,
approval of the board, as well as acceptable financing. 

This strategic transaction, highly regarded by both companies, will establish a
distinguished and fully integrated system supplier in the sectors of piping,
power and automation, with a notable inclusion of high-voltage expertise. This
partnership significantly fortifies Eqva's role as a prominent supplier to
industrial customers in Norway. Following this merger, the Eqva Group will be
composed of a formidable team of over 730 highly skilled professionals, and
further strengthen its position in the industry.

As of Q3 2023, Eqva reported an expected turnover for 2023 of between NOK
600-700 million on a pro-forma basis, and an order book of NOK 504 million. The
targeted LOS companies expect a full year turnover of approximately NOK 700
million in 2023. Eqva will provide guidance for 2024 in the Q4 2023 report.

Under the current plan, Eqva will acquire shares from the owners of LOS Group in
exchange for shares in a newly established subsidiary of Eqva, along with a cash
component. The subsidiary will simultaneously acquire the shares in BKS. Eqva's
ownership in the new subsidiary is expected to be 61 percent after the
transaction. The current owners of LOS Group will own the remaining 39 percent.
The combined entity will have an EV of approximately NOK 620 million. Further
details regarding the settlement will be disclosed upon finalization of the
business combination agreement. The new subsidiary of Eqva will be listed on the
Oslo stock exchange in the next 12-18 months.

"With this move, Eqva continues to deliver on its strategy for growth and
broadening of its service offering. This combination enhances Eqva's access to
attractive markets in Norway such as the smelting industry, maritime and
landbased industry. We look forward to work with our new colleagues and will
strive to further enhance our power and automation service offering for our
valued customers," said Erik Høyvik, CEO of Eqva. 

"In addition to opening new market segments for Eqva, we will be able to
leverage synergies between the companies involved. The LOS Group has
approximately 370 skilled professionals in total. In BKS, we already have 80
employees working in the power and automation segment. Together we will have a
pool of approximately 450 skilled and experienced employees in this segment,"
Mr. Høyvik added.

Following the transaction, LOS will continue to operate under their current
brand to ensure a seamless continuation of operations. 

"We are excited to become part of Eqva. We have a history of collaboration with
BKS, and we operate in the same region and markets. This merger gives us an
opportunity to increase our market share and strengthen the competence and
quality of our services to both existing and new customers. We also see
potential to undertake larger multidisciplinary projects in the future," said
Jakob Særsten, CEO of LOS Group.  


About Eqva:  
Eqva ASA is a knowledge-based active owner of engineering, construction and
service companies that contribute to the green transition in maritime, power
intensive and renewable industries. 

The group has a well-diversified product and market portfolio, and further
growth will be established through a combination of company-based development,
utilization of synergies between the companies in the group as well as
value-creating M&A activities. 

Key companies in the group are BKS and Fossberg Kraft, each building on decades
of experience and widely recognized by clients in a broad range of industries. 

Read more on www.eqva.no


About LOS:  
LOS, with over 40 years of experience, is a full-service supplier for power and
automation installations. The company serves customers in the smelting industry,
fish farming, offshore, maritime and landbased industries, as well as
households. With a team of 370 employees, including skilled engineers and
installation experts, LOS is recognized as a trusted partner in the power and
automation industry.  


For more information, please contact: 
Erik Høyvik, Chief Executive Officer. Phone: +47 916 83 173
Even Matre Ellingsen, Chairman of the Board. Phone: + 47 990 05 500  

 
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. The stock exchange
announcement was published by Ask Haukaas, interim CFO, Eqva ASA, at the date
and time as set out above.