[ad_1]
One year after acquiring Hemfosa, SBB is making its next big step. The company is bidding for the Norwegian Entra, similar to Vasakronan, with properties worth more than SEK 50 billion. CEO Ilija Batljan’s goal is to create the leading European actor in social infrastructure.
(The text is continually updated)
Entra long asked for Norway’s response to Vasakronan, and was previously owned by the Norwegian state before it was listed on the Oslo Stock Exchange on October 17, 2014. However, the Norwegian state remains the owner with the 20 percent.
At the end of the third quarter, Entra owned properties worth NOK 52 billion, corresponding to approximately SEK 50 billion. The properties are located primarily in the Oslo area (61 percent), but also in Bergen, Stavanger and Trondheim.
The portfolio contains 90 properties with a total of 1.3 million square meters. 59 percent of rental income comes from the public sector.
The deal gives SBB a real estate portfolio worth approximately SEK 131 billion.
The design of the offer is somewhat reminiscent of Hemfosa a year ago. At the time, 55% was offered in the form of newly issued shares and 45% in cash. In the bid for Entra, 70% is delivered in cash and the remaining part in newly issued shares.
The terms of the offer mean a total value for Entra of NOK 30,052 million.
The offer price of NOK 165 per share corresponds to a premium of approximately: 26.3% compared to the volume-weighted average price of Entra’s share on the Oslo Stock Exchange during the three months to 23 November inclusive and 14.8% compared to the closing price of the Entra share. on the Oslo Stock Exchange on November 23.
SBB CEO Ilija Batljan comments on the transaction:
– We want Entra to be part of SBB and add to our ambition to create the leading social infrastructure company in Europe, a company with a unique, attractive and stable portfolio of properties with long-term leases, high occupancy rates and a diversified base and high quality. of tenants in the Nordic region. We see opportunities to unleash significant synergies, especially through refinancing benefits, which would accelerate savings in terms of financial and operating costs, benefiting all shareholders and other stakeholders.
The synergies that the company estimates to exist so far amount to SEK 260 million in operating operations and around SEK 200 million in financing synergies.
The battle continues:
– Our philosophy is that tenants should not have to immobilize capital in the form of real estate. Instead, they should have the opportunity to prioritize investments in people, services and solutions for the benefit of society. Our role is to attract capital on competitive terms from national and international investors.
Once the transaction is completed and full adherence to the Offer has been granted, existing SBB shareholders will own approximately 83.5% of the total number of shares in the merged company and Entra shareholders will own approximately 16, 5%.
SBB is already a major property owner in Norway. About 22 percent of the company’s property value is there (and 8 percent in Finland and 1 percent in Denmark).
If the deal goes through, SBB will have a higher property value in Norway than in Sweden. However, according to Fastighetsvärlden, it is highly likely that SBB will sell parts of Entra’s portfolio, especially those that have no connection to any kind of community property.
SBB has already made acquisitions of Entra units in Norway. Read more here.
In Norway, SBB has also done a great deal by buying and then selling DNB’s modern office in the center of downtown Oslo. Read more here. It was a real cut for the company.
Arctic Securities, Citigroup Global Markets Europe AG and Goldman Sachs International act as financial advisers to SBB. Arctic Securities also acts as the settlement agent for the Offer. The law firm Thommessen AS acts as legal advisor to SBB with respect to Norwegian law and Advokatfirmanet Vinge KB acts as legal advisor to SBB with respect to Swedish law. The law firm Wiersholm AS acts as the Norwegian legal representative of the settlement agent.
