Inin Group AS: Non-binding offer received for Inin Group’s subsidiary Elop Technology AS | Company Update

21 February 2023 - Inin Group has received a USD 30 million non-binding offer
for the potential sale of wholly-owned subsidiary Elop Technology AS. 

In connection with the received offer, Inin Group has decided to provide a
company update to the market, the company update is attached to this
announcement and show the Inin group with Elop Technology as divested. 

Inin Group - without Elop Technology, - target a revenue of approximately NOK
540 million and a profitable result in 2023. In addition to the expected organic
growth, Inin Group expects to announce further acquisitions in near future. 

As of 31. December 2022 Inin Group had no interest-bearing debt and
approximately NOK 135 million in available liquidity, including a NOK 50 million
vendor note from the sale of Simplifai last year. The company had an
order-backlog of NOK 369 million.

Further details will be given in the planned H2-2022 presentation that will be
held on the 9th of March.

POTENTIAL SALE OF ELOP TECHNOLOGY

Inin Group has received the offer regarding the potential sale of Elop
Technology, a wholly owned subsidiary of Inin Group, to an undisclosed entity.
The potential transaction could reinforce Elop Technology`s international
expansion and create synergies within a company that intends to pursue a process
of a public listing on NASDAQ. 

The received proposal value Elop Technology at USD 30 million. The acquisition
amount will, if accepted, be settled in a 100{38557cf0372cd7f85c91e7e33cff125558f1277b36a8edbab0100de866181896} share swap. The transaction is
subject to satisfactory due diligence by both parties and final transaction
documentation being entered. The Inin Group Board of Directors will now use time
to evaluate the proposal before they give their recommendation or acceptance to
the proposal.

The offer contains certain guarantees that secures intellectual property right
protection for Elop Technology's ultrasound scanner technology if the planned
listing does not go ahead. The listing must take place within 18 months after
closing of the transaction.

"The offer is for Elop Technology as a standalone business and do not affect any
of our other business units. Elop Technology have a unique technology, but as we
have announced earlier, we have looked for a partner or co-owner since it is
risk and will take time before the company will become profitable. The
management team in Elop Technology has been a natural and active part in the
process and in the discussions with the potential buyers. The potential
transaction represents strong interest in Elop Technology`s IP. If the
transaction and subsequent NASDAQ-listing go ahead, this transaction could
represent a significant upside potential for Inin Group," says Øivind Horpestad,
CEO of Inin Group AS and chairman of Elop Technology AS.
 
ARC Group Limited is acting as the exclusive financial advisor to Elop
Technology AS in this potential transaction.
 
Inin Group expects the final terms and conditions to be negotiated and finalized
during the first quarter 2023. 

During 2022, Inin Group acquired Nordic Infrastructure Group AS, a rail-focused
construction competence and service supplier; Hadeland Elektro AS, a complete
electrotechnical solution provider for power supply and infrastructure projects;
and established testing, inspection and certification (TIC) company Nordic
Inspekt Group AB. 

In addition, Inin Group owns Elop Technology AS, which delivers inspection
hardware and software, including ultrasound-based scanner solutions to determine
the internal state of concrete structures. 

"Inin Group aims to ensure value creation through a combination of well-executed
acquisitions and successful organic growth initiatives. Our starting point for
consolidation is to identify an attractive market or niche. The plan is that our
portfolio companies, such as Nordic Infrastructure Group or Nordic Inspekt
Group, make the acquisitions to consolidate and/or to add a service or
competence. Our preference is to co-own with management and founders, but we can
also choose to acquire all shares in a company," says Øivind Horpestad, CEO of
Inin Group.

(ENDS)

For further information, please contact:
Øivind Horpestad, CEO of Inin Group, Tel: +47 910 00 626

About Inin Group AS
Inin Group is an industrial owner that invests into companies within
infrastructure and industry services niches in the Nordics. The group aims to
create value by identifying investment opportunities within profitable niches
with potential for development, consolidation and growth, working in
collaboration with portfolio companies to deliver sustainable growth and
superior profitability. For more information, please visit: www.inin.no

About ARC Group
ARC Group is a full-service financial services provider within cross-border
capital markets and M&A advisory services with offices in mainland China, Hong
Kong, Singapore, Indonesia, Malaysia, India, UAE, Mexico, and New York. ARC
Group successfully closed USD 8.4 billion in total transaction value in 2022.
For more information, please visit: www.arc-group.com

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