An investment firm got Transcom horribly wrong this year

Debt collection and call center company Transcom Worldwide (STO:TWW SDB-B) is currently raising more than 500 million Swedish Kroner in a fully underwritten rights issue after a string of disappointments resulted in a need for more capital. AB Kinnevik (STO: KINV V, STO: KINV B) insures that the right issue is fully guaranteed. Transcom is also currently investigating a possible redomiciliation to Sweden from Luxemburg. This should also lead towards a less complex share float, with only one class of shares.

Dagens Industri interviewed leaders from Öresund, Investment AB (STO: ORES), which this summer bought heavily into Transcom, on the situation. Needless to say the company leaders are disappointed that an 80 million investment is currently valued 2.6 million just a few months in, even if they are taking a long position and even though it only represents nary a mentionable portion in the 5.5 billion substance value of Öresund. Öresund had analyzed that peer companies are making money and that Transcom’s debt collection business should be profitable.

Öresund’s CEO Stefan Charette is highly critical of Transcom’s management in the article. He says that the major tax hit from Italy and the high costs of restructuring in North-America came as a complete surprise to the investment firm, whereas the issues should have been mentioned in Transcom’s interim/annual reports. There have been major changes in Transcom’s leadership positions since. Öresund plans to partake in the rights issue.

Öresund Investment itself is in the middle of a planned split as long time business partners Sven Hagströmer and Mats Qviberg agreed for Hagströmer to form a new company (yet to be named and to be listed in First North) out of his portions of Öresund’s holdings.