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In a listing on the stock exchange Tuesday afternoon, Entra writes that Entra’s board of directors will not recommend the $ 30 billion offer from Sweden’s SBB.
“The board, with the help of advisers, evaluated the potential offer, including the financial conditions that were presented. While the board appreciates the interest in Entra, the board concluded, and already expressed to SBB prior to this announcement, that the board will not recommend the potential offering, “the report said.
Furthermore, it is stated that Entra, prior to SBB’s offer, has received a separate and non-binding offer from another party “which may or may not result in an offer for the shares of the company.”
“Fantastic”
At a press conference, SBB CEO Ilija Batljan described the latest offer of NOK 165 per share as “absolutely fantastic”.
– I have great respect for the board and we have had friendly conversations with the board, and as I said, we have submitted two offers and our latest offer of 165 crowns is absolutely fantastic, says CEO Ilija Batljan at SBB during the offer presentation in Enter. Tuesday, according to TDN Direct.
Entra’s stock is up nearly 19 percent so far Tuesday and is up another 3.3 percent following the announcement that the board will not recommend the sale to SBB.
The stock is now trading for around NOK 175, against a closing price of NOK 143.7 on Monday.
Billion Dollar Offer
On Tuesday it was announced that Swedish real estate company SBB will submit an offer for NOK 165 per share to buy real estate group Entra.
SBB’s purchase proposal means that the Swede pays NOK 115.5 per share in cash and NOK 49.5 in new SBB shares b. SBB’s share is currently listed on the Stockholm Stock Exchange.
In total, this means NOK 21 billion in cash consideration, while the issue of around 296 million SBB Class B shares will correspond up to NOK 9 billion. In total, the offer is around NOK 30 billion.
The listed Entra Group, which was previously state-owned, now has the Ministry of Commerce and Industry as the second largest owner. The Ministry owns 8.23 percent of the shares, while Folketrygdfondet is the largest owner with 8.8 percent. Entra Group has a strong economy, and in the last five years it has raised more than NOK 18 billion before taxes.
“Aggressive with acquisitions”
SBB was one of the candidates for the purchase. The first manager, Thomas Nielsen, was appointed as a possible bidder Tuesday morning.
– The Swedish SBB is perhaps the most relevant buyer. They have been aggressive in acquisitions, as public tenants and have expressed that they want to do more in Norway, he told DN early Tuesday.
SBB describes itself as ‘the leading social infrastructure real estate company in the Nordic region’, with experience in managing rental properties in collaboration with Nordic municipalities.
SBB CEO Batljan highlighted that this was just the beginning of the company’s growth plans:
– We will build the largest player in social infrastructure in Europe, and size matters(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
