Situation
In early 2000, ICL Plc ("ICL") appointed ARC Associates to review strategic options for the creation of a leading e-Business services company in the Nordic region.
ICL's subsidiary, ICL Invia Oy ("ICL Invia"), is a market leader in developing leading-edge e-Business solutions in the Finnish market. ICL and ARC Associates determined a series of initiatives to further leverage ICL Invia's strengths and better position it for international growth. This involved broadening ICL Invia's shareholding base and restructuring ICL's and ICL Invia's assets in the Nordic region to create a leading pan-Nordic e-Business services provider.
Approach
ARC Associates advised ICL on a variety of issues relating to the private placement of ICL Invia shares. This included selection of the placement agent, valuation, placing strategy, transaction documentation, and due diligence. In addition ARC Associates advised on business relationship issues between ICL and ICL Invia.
The Transaction
On 31 March 2000, ICL announced that it had sold 16.8% of ICL Invia in a private placement arranged by Enskilda Securities for EUR 235 million.