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There will be a bidding war between two Swedish giants to secure the real estate company Entra. In a stock announcement Thursday morning, Castellum announces an offer of NOK 170.86 per share. That is NOK 5.86 more than the bid from competitor Sämhallsbyggnadsbolaget i Norden (SBB).
Castellum has already signed an agreement with the Ministry of Commerce and Industry to buy the 15 million state shares in the company. In this way, Castellum has secured 8.24 percent of Entra’s shareholding.
– I am convinced that a merger between Castellum and Entra will create a unique company: the Nordic region’s leading listed player in the real estate market with the power and ability to be an industry leader in many areas, says CEO Henrik Saxborn in a stock release.
An hour after Castellum’s counter offer, SBB CEO Ilija Batljan strikes back.
– Our offer is the best. We offer more cash and stock settlement that have performed better than Castellums in the last two years, he tells DN.
Ilija Batljan is the Managing Director of Sämhallsbyggnadsbolaget i Norden (SBB), which is fighting for Entra. (Photo: FREDRIK SANDBERG / TT)
Valued at NOK 31 billion
Castellum’s offering consists of a combination of cash and newly issued shares in Castellum, which is listed on the Stockholm Stock Exchange. Entra shareholders can receive 13 new Castellum shares for every 20th share they already own. In addition, they receive NOK 25.68 per share. Castellum’s offering values the company at over NOK 31 billion
The total consideration will be 109 million new shares in Castellum and up to NOK 4.3 billion in cash.
The battle for Entra began on Wednesday, when SBB submitted a bid for Entra. This means that shareholders receive NOK 115.5 per share in cash and NOK 49.5 in new SBB shares b. It valued Entra at around NOK 30 billion.
Immediately after the offer, the Entra board made it clear that it would not recommend the NOK 30 billion offer to shareholders. They also stated that they had received a non-binding offer from another company.
Entra rises 2.55 percent to NOK 172.9 per share following Castellum’s offer. The closing price on Tuesday, the day before SBB’s first offering, was NOK 143.7 per share.
Following Castellum’s offer, the Entra board announces that they will evaluate the offer together and then return with a message.
“Very satisfied”
Entra is listed on the Oslo Stock Exchange and owns several of Norway’s most famous commercial properties, including the Postgiro building, the National Library and the Media City in Bergen.
It used to be state-owned, but now the state is being sold. They receive NOK 169 per share, which is equivalent to NOK 2.5 billion. Contrary to Castellum’s offer to the rest of the shareholders, the state has received the full settlement in cash.
– The government has long made it clear that the state is not a long-term owner of Entra. The stock has developed well since listing in 2014 and I am very pleased with the sale, says Trade and Industry Minister Iselin Nybø in a press release.
An adjustment mechanism has also been agreed to ensure that the State receives the same price as the rest of the Entra shareholders if Castellum submits a mandatory offer for all Entra shares. You can give them some additional consideration on stocks.
Castellum’s offer means that the companies will merge. An application for a secondary listing on the Oslo Stock Exchange will also be submitted for Castellum shares.
– A merged company will be the main Nordic real estate company, so this seems correct from both an industrial and financial point of view, says Nybø.
Castellum was founded in 1993 and is one of the largest commercial real estate companies in Sweden. On the Stockholm Stock Exchange, the company is valued at SEK 57 billion. The largest owner of the company is the Swedish real estate billionaire Rutger Arnhult (53).
Fighting former politicians
Castellum’s Swedish competitor SBB was started by former politician Ilija Batljan for the Social Democrats in 2016. Since then, the company has grown at a dizzying pace.
– When it comes to such good company, there are always those who try to fish. We continue to believe that our offer is the most attractive. They both get a part in cash, but they can also take part in a long-term trip. It’s a win-win situation, Batljan told DN on Wednesday when it emerged that another player was interested in Entra. (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.
