Press release
Reinach (Aargau), 17 June 2019

Aluflexpack AG launches IPO on SIX and sets price range at CHF 20.00 to CHF 26.00 per share

• The IPO comprises a base offering for up to 7,300,000 new shares and a Greenshoe option of up to 730,000 shares from Montana Tech Components AG, the current sole (and the future majority) shareholder^[1]
• The price range was set at CHF 20.00 to 26.00, amounting to a total issuance volume of approximately CHF 146.0 million to CHF 168.2 million in the base offering, and approximately CHF 160.6 million to CHF 185.0 million in case the Greenshoe option is fully exercised
• Expected free float after the IPO - assuming the Greenshoe option is fully exercised - of up to approx. 46.4 per cent
• The offer will commence on 17 June 2019, and is expected to conclude on 27 June 2019 at 12:00 (noon) CEST
• First trading day of the shares at SIX Swiss Exchange is envisaged for 28 June 2019

Together with its sole shareholder, Montana Tech Components AG ("Montana"), and Joh. Berenberg, Gossler & Co KG, Aluflexpack AG has determined the terms of the planned listing in the International Reporting Standard of the SIX Swiss Exchange. The price range for the shares offered was set at CHF 20.00 to CHF 26.00 per share. The final offer price will be determined on the basis of a bookbuilding process, which will be launched today.

The IPO consists of a public offer in Switzerland and private placements to qualified investors in certain jurisdictions outside Switzerland. The bookbuilding process will begin today, 17 June 2019, and is expected to conclude on 27 June 2019, at 12:00 (noon) CEST. The announcement of the final offer price is expected to take place on 28 June 2019. On the same day, the listing and the commencement of the trading of the shares on the SIX are envisaged to take place.

Igor Arbanas, CEO of Aluflexpack AG, says: "We are well positioned in selected fast growing markets with our high quality products and services, and have access to a deep and integrated value chain. The successful implementation of our strategy is also reflected in the positive development of our results. We are pleased to not only see interest from our customers to further develop our business but also see numerous additional market opportunities - and on this high growth potential we wish to capitalize. Against this background, we look forward to the next exchange with the investors."

Targeted issuance volume of CHF 146.0 to CHF 168.2 million (approx. EUR 130.0 million to EUR 150.0 million)

The base offering comprises up to 7,300,000 new shares, which are to be issued in a capital increase. However, primary gross proceeds from the base offering are capped at approx. EUR 150.0 million, i.e., the number of new shares to be issued will be downward adjusted depending on the final offer price. The current sole shareholder, Montana Tech Components, will provide up to 730,000 existing shares for potential over-allotments (capped at 10% of the aggregate number of new shares sold in the offering), totaling up to 8,030,000 offered shares. The total offer volume thus amounts to approx. CHF 146.0 million to CHF 168.2 million in the base offering, and CHF 160.6 million to CHF 185.0 million if the Greenshoe option is fully exercised. Assuming the placement of all the offered shares and a fully-exercised Greenshoe option, a free float of up to 46.4 per cent of the share capital is expected.

Issuance proceeds to accelerate growth

The proceeds raised by Aluflexpack AG are intended primarily to expand production capacity in Europe, automate production and target company acquisitions. Shareholder loans already granted to pre-finance these growth initiatives will be repaid. Approximately EUR 30 million are to be invested in the expansion of existing production capacities for stand-up pouches. Another EUR 30 million would be invested in additional capacities at other production sites and occasionally in efficiency and automation facilities. It is also planned to spend around EUR 80 million on value-added acquisitions in Asia, Europe, the MENA region and North America, of which a low double-digit euro million amount was already invested for the acquisition of the Turkish company Arimpeks in September 2018 and was pre-financed by the existing shareholder via shareholder loans.

A lock-up period of 12 months is agreed with the Company, as well as with Igor Arbanas, CEO of Aluflexpack AG, Johannes Steurer, CFO of Aluflexpack AG, and Martin Ohneberg, Chairman of the Board of Directors of Aluflexpack AG. Montana is subject to a 24 months lock-up.

Trading in the International Reporting Standard segment of the SIX Swiss Exchange is scheduled to commence on 28 June 2019 - under the Swiss Securities Number (Valor) 45322689 and the International Securities Identification Number (ISIN) CH0453226893. Copies of the Offering Memorandum and of the Supplement are available free of charge in Switzerland from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, Switzerland (email: prospectus@zkb.ch). In addition, copies of the Offering Memorandum and of the Supplement are and will be available free of charge in Switzerland from Aluflexpack AG, Alte Aarauerstrasse 11, 5734 Reinach (AG), Switzerland (email: lukas.kothbauer@aluflexpack.com).

Joh. Berenberg, Gossler & Co KG acts as sole global coordinator and joint bookrunner for the transaction, with Zürcher Kantonalbank AG as joint bookrunner, and Raiffeisen Centrobank AG as co-lead manager.

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[1] Primary gross proceeds capped at approx. EUR 150.0 million, i.e., number of new shares to be downward adjusted depending on the final offer price; number of shares available for Greenshoe option not to exceed 10% of aggregate number of new shares sold in the offering.
 

Media contacts
Dynamics Group AG
Andreas Durisch / Thomas Balmer
adu@dynamicsgroup.ch / tba@dynamicsgroup.ch
+41 43 268 32 32

About Aluflexpack AG:

Aluflexpack AG (Aluflexpack) is a 100 % subsidiary of Montana Tech Components AG. Aluflexpack produces flexible packaging solutions mainly for end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and dairy. Well-established insights, service flexibility and innovative strength are what underpin long-term customer relationships; both with locally operating companies and large international corporations. Aluflexpack, headquartered in Reinach (AG), Switzerland, has production facilities in Switzerland, France and Turkey and four production facilities in Croatia. The number of employees as of March 31, 2019 was approximately 1,150. www.aluflexpack.com

Disclaimer

The information contained herein is not for release, directly or indirectly, in or into the United States of America, Canada, Australia, Japan or any other jurisdiction where to do so would be unlawful. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in Canada, Australia or Japan or any other jurisdiction where such an offer or solicitation would be unlawful. In particular, this document is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or an exemption from registration. The securities referred to herein have not been and will not be registered under the Securities Act. No public offering of the securities will be made in the United States.

This communication is not being distributed to, and must not be passed on to, the general public in the United Kingdom. This announcement is made to and is directed only at persons in the United Kingdom having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) or are high net worth companies, unincorporated associations etc falling within Article 49(2), in each case of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, and to those persons to whom it can otherwise lawfully be distributed (all such persons together being referred to as "relevant persons"). This communication and the securities referred to herein are, and will be made, available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, such relevant persons. No other person should rely or act upon it. This communication is not intended for distribution to and must not be passed on to any retail client.

Statements contained herein may constitute "forward-looking statements". Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause Aluflexpack AG's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Aluflexpack AG does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.

This communication is not an issuance or listing prospectus or a similar document in the sense of article 652a, article 752 and/or article 1156 of the Swiss Code of Obligations or articles 27 et seq. of the Listing Rules of the SIX Swiss Exchange and was not reviewed by any competent authority. Any offer of securities of Aluflexpack AG will be made solely by means of, and on the basis of, an offering memorandum that will contain detailed information about the Company and its management as well as risk factors and financial statements. Any person considering the purchase of any securities of Aluflexpack AG must inform itself independently based solely on such offering memorandum (including any supplement thereto). Investors are furthermore advised to consult their bank or financial adviser before making any investment decision.^[1] Primary gross proceeds capped at approx. EUR 150.0 million, i.e., number of new shares to be downward adjusted depending on the final offer price; number of shares available for Greenshoe option not to exceed 10% of aggregate number of new shares sold in the offering.