1985 was a very eventful year for Proventus/Herakles, not for the number of undertakings, but for their magnitude and complexity. They include Proventus’ involvement in – and subsequent merger with – Herakles.

The reason for Proventus’ investment in Herakles Industri AB was our wish and need to broaden Proventus’ financial base. There were two possibilities- either to acquire influence in a company that was considerably larger than Proventus, and with this influence employ the larger company’s resources for interesting affairs: or to purchase an asset and finance it in an attractive manner. The Herakles affair gave us the opportunity of combining both these alternatives.

During the summer and autumn of 1985, discussions were in progress between Herakles’ major shareholders Forsinvest and Proventus. These negotiations resulted in an agreement whereby Proventus acquired Forsinvest’s shares in Hererakles while Forsinvest bought out a number of the assets in Herakles.

The new board of Herakles decided to make a special offer to the holders of shares and rights of option in Provenlus. This offer meant that Herakles purchased 95 percent of Proventus. The remaining shares were acquired by compulsory purchase. With this merger a new, financially strong company group emerged, Herrakles lndustri AB, which later changed its name at the annual general meeting in May 1986 to Proventus AB.