Michelin/Enviro agreement expected in 4Q 2020

Scandinavian Enviro Systems (publ) and Michelin expect the final agreement regarding their strategic partnership will be reached during the fourth quarter 2020 rather than at the end of October, which Enviro previously communicated. The coronavirus pandemic is cited as the reason for the delay in negotiations.

However, while the pandemic has made it more difficult to hold regular face-to-face meetings, negotiations have and Enviro reports that progress has been made.

“Both parties are determined to complete our letter of intent by reaching a final agreement as soon as possible. Both Enviro and Michelin continue to see a great potential in a strategic partnership and we expect to sign a final agreement during the fourth quarter this year”, said Alf Blomqvist, chairman of Enviro.

The negotiations have been ongoing since 15 April when Enviro and Michelin announced that they had signed a letter of intent regarding a strategic partnership. In connection with this, Enviro conducted and finalized a directed share issue (private placement) of approximately SEK 32.5 million to Michelin, corresponding to ownership of 20 per cent after the completed issue, which Michelin subscribed for through its wholly-owned subsidiary Michelin Ventures SAS. Following the completion of the issue at the end of April, Michelin became the largest shareholder in Enviro.