Why Creaspac?
Creaspac offers an opportunity for institutional investors as well as the general public to invest, together with Creades’s experienced investment organisation, in an unlisted company in a listed environment. The future acquisition will be identified with the help of Creades’ investment organisation and Creaspac thereby benefits from Creades’ experience, expertise and investment philosophy.
Furthermore, the model provides a joint starting point for value-creating business development and shareholder participation by being involved in deciding on the acquisition to be carried out and in the future value growth. Under certain conditions, shareholders may refrain from investing by requesting redemption of their shares if the general meeting approves an acquisition that the investor has voted against.
Long-term owners with experience in developing successful companies in a listed environment
Creades intends to be a long-term principal owner in Creaspac that places demands and assumes responsibility, and Creades will undertake not to divest its shareholding in Creaspac for a period of time after Creaspac has completed an acquisition. Creades has experience in transactions and active ownership in companies in different industries, development phases and environments, from private growth companies in the early phase and IPO-mature companies to listed medium-sized companies with a higher degree of maturity; and a proven ability to develop companies along this spectrum. Creades as principal owner is therefore well suited to find and later develop Creaspac through the role as a sponsor.
Large network that provides the conditions for identifying and acquiring interesting target companies
Creaspac, with the support of Creades’ investment organisation, will work actively to find target companies that are deemed to be suitable for development in a listed environment. In addition, Creaspac expects companies, their management and owners to contact Creaspac or Creades after the Offering has been completed. Through its proven ability to successfully develop companies as owners, Creades has a large network that provides access to exclusive and unique investment opportunities, which will benefit Creaspac in its search for acquisitions.
Attractive purchaser of unlisted companies
Creaspac considers that a number of factors make Creaspac an attractive purchaser and future owner of companies. Creaspac provides growth companies and companies that are facing a succession of generation the possibility to raise capital, that may be used to accelerate growth through geographic expansion or to investments in product development. From a corporate governance perspective, it can be valuable for the acquired company to have a new clear and strong principal owner who can support the company in the long term together with the other owners. By selling to Creaspac, the target company also gains access to the Swedish and international capital markets, which can further promote the target company’s continued growth and development, increase awareness of the target company and strengthen its brand. The transparent corporate governance model and the access to Swedish and international capital markets can also be valuable aspects for the target company compared to a private sale.
Compared to a traditional IPO, a sale to Creaspac means a less complex, faster, safer and more cost-effective process for the seller. An exclusive negotiation can be conducted with a counterparty, in which the purchaser can gain a deeper understanding of the target company’s future plans than what is possible for buyers of shares in connection with a stock exchange listing. This will allow the terms of the transaction to be negotiated before the listing process is fully launched.
Transparent structure with common incentives
Creades invests SEK 375 million in Creaspac, which represents a significant cash investment for Creades. Creades, as the largest owner, will invest on the same terms as other investors to create common interests and incentives. As a sponsor and initiator of Creaspac, Creades will subscribe for Sponsor Warrants free of charge. For the services that Creades provides Creaspac, Creades receives a fixed monthly fee. Creaspac makes the assessment that this structure is attractive both from a financial perspective and from a conflict of interest perspective as it increases the incentives for Creades to be a long-term and committed owner that safeguards the Company’s interests for a longer period of time to develop the Company and create shareholder value.