Prospectus of 13 June 2017
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Norlandia Health & Care Group AS, prospectus of 13 June 2017 Registration Document Prospectus Norlandia Health & Care Group AS Registration Document Oslo, 13 June 2017 Joint Managers: 1 of 50 Norlandia Health & Care Group AS, prospectus of 13 June 2017 Registration Document Important information The Registration Document is based on sources such as annual reports and publicly available information and forward looking information based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for the Company's and Guarantor’s (including subsidiaries and affiliates) lines of business. A prospective investor should consider carefully the factors set forth in chapter 1 Risk factors, and elsewhere in the Prospectus, and should consult his or her own expert advisers as to the suitability of an investment in the bonds. This Registration Document is subject to the general business terms of the Joint Managers, available at their respective websites (www.abgsc.no, www.dnb.no and www.pareto.no). The Joint Managers and/or affiliated companies and/or officers, directors and employees may be a market maker or hold a position in any instrument or related instrument discussed in this Registration Document, and may perform or seek to perform financial advisory or banking services related to such instruments. The Joint Managers’ corporate finance department may act as manager or co-manager for this Company and/or Guarantors in private and/or public placement and/or resale not publicly available or commonly known. Copies of this Registration Document are not being mailed or otherwise distributed or sent in or into or made available in the United States. Persons receiving this document (including custodians, nominees and trustees) must not distribute or send such documents or any related documents in or into the United States. Other than in compliance with applicable United States securities laws, no solicitations are being made or will be made, directly or indirectly, in the United States. Securities will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The distribution of the Registration Document may be limited by law also in other jurisdictions, for example in Canada, Japan and in the United Kingdom. Verification and approval of the Registration Document by the Norwegian FSA (“Finanstilsynet”) implies that the Registration Document may be used in any EEA country. No other measures have been taken to obtain authorisation to distribute the Registration Document in any jurisdiction where such action is required. The Norwegian FSA has controlled and approved the Registration Document pursuant to the Norwegian Securities Trading Act, § 7-7. The Norwegian FSA has not controlled and approved the accuracy or completeness of the information given in the Registration Document. The control and approval performed by the Norwegian FSA relates solely to descriptions included by the Company according to a pre-defined list of content requirements. The Norwegian FSA has not undertaken any form of control or approval of corporate matters described in or otherwise covered by the Registration Document. The Registration Document was approved on 14 June 2017. The Registration Document is valid for 12 months from the approval date. The Registration Document together with a Securities Note and any supplements to these documents constitutes the Prospectus. The content of the Prospectus does not constitute legal, financial or tax advice and potential investors should seek legal, financial and/or tax advice. Unless otherwise stated, the Prospectus is subject to Norwegian law. In the event of any dispute regarding the Prospectus, Norwegian law will apply. 2 of 50 Norlandia Health & Care Group AS, prospectus of 13 June 2017 Registration Document TABLE OF CONTENTS: 1 Risk factors ...................................................................................................................... 4 2 Definitions ....................................................................................................................... 8 3 Persons responsible ......................................................................................................... 10 4 Statutory Auditors ........................................................................................................... 11 5 Information about the issuer ............................................................................................. 12 6 Business overview ........................................................................................................... 20 7 Organizational structure ................................................................................................... 30 8 Trend information ............................................................................................................ 32 9 Administrative, management and supervisory bodies ........................................................... 34 10 Board practices.............................................................................................................. 39 11 Major shareholders ........................................................................................................ 40 12 Financial information concerning the issuer's assets and liabilities, financial position and profits and losses ......................................................................................................................... 41 13 Material contracts .......................................................................................................... 44 14 Third party information and statement by experts and declarations of any interest ................ 45 15 Documents on display .................................................................................................... 47 Joint Managers' disclaimer ................................................................................................... 48 Annex 1 Interim and annual reports ..................................................................................... 49 Annex 2 Articles of Association ............................................................................................. 50 3 of 50 Norlandia Health & Care Group AS, prospectus of 13 June 2017 Registration Document 1 Risk factors Investing in bonds issued by Norlandia Health & Care Group AS and guaranteed by the Initial Guarantors involves inherent risks. As the Company is the parent company of the Group, including but not limited to the Initial Guarantors, and primarily a holding company, the risk factors for Norlandia Health & Care Group AS and the Initial Guarantors are deemed to be equivalent for the purpose of this Registration Document. Prospective investors should consider, among other things, the risk factors set out in the Prospectus, including those set out in both the Registration Document and the Securities Note(s), before making an investment decision. The risks and uncertainties described in the Prospectus are risks of which Norlandia Health & Care Group AS is aware and that Norlandia Health & Care Group AS considers to be material to its business. If any of these risks were to occur, Norlandia Health & Care Group AS’ and/or the Initial Guarantors’ business, financial position, operating results or cash flows could be materially adversely affected, and Norlandia Health & Care Group AS and/or the Initial Guarantors could be unable to pay interest, principal or other amounts on or in connection with the bonds. Prospective investors should also read the detailed information set out in any accompanying Securities Note(s), and reach their own views prior to making any investment decision. An investment in the bonds is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment. Industry and regulatory risks Market risk - the Group's business, results of operations and financial conditions depend principally upon conditions prevailing for childcare and care services in the Nordic region, in particular, public policies and the political climate. Furthermore, the demand for the Group’s services will be dependent on inter alia the birth rates and the longevity in the regions where the Group operates. Integration services will in addition to political decisions be affected by geopolitical situations, which may lead to reduced number of immigrants and asylum seekers. Demand for private care services may decrease depending on a number of demographic and economic factors. Political risks - the Group’s operations are subsidized by public authorities. Changes in the political climate or framework legislation for such subsidies may have a materially adverse effect on the Group’s business model, operations and financial condition. Regulatory framework – the Group’s operations are subject to legal framework, which may change in the future. Changes in the framework legislation and conditions of operating preschools, nursing homes, reception centers or other parts of the Groups business and operations, such as profit restrictions similar to that proposed in Sweden through sou 2016:78, dividend restrictions or restrictions on private ownership, may significantly and adversely impair the Group`s liquidity and business