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SBB is offering SEK 165 per share in Entra, one of Norway’s largest real estate companies. The offer means that SBB is offering current Entra owners a premium of just over 26 percent compared to the average price of Entra for three months up to Monday’s closing price.
“We would like Entra to become part of SBB and join our ambition to create the leading social infrastructure company in Europe,” Ilija Batljan writes in a press release.
Entra’s participation is increasing
Entra’s stock is rising about 11 percent on the Oslo Stock Exchange after the SBB offering was announced. At the same time, SBB’s stake is declining by around 2 percent.
According to SBB, the now public offering is a sugary version of previous offers submitted to Entra’s board on a confidential basis.
“While SBB awaits a recommendation from the Entra Board of Directors, SBB has chosen to publish its intention to submit an offer with the aim of giving Entra shareholders the opportunity to accept the Offer before the turn of the year,” writes SBB.
Entra owns and manages a total of 90 properties with a total area of 1.3 million square meters. The focus is on state-funded tenants in metropolitan areas like Oslo, Bergen, Stavanger, and Trondheim.
Portfolio valued at 51 billion
The market value of the company’s property portfolio at the end of the third quarter amounted to NOK 51 billion.
“SBB has identified a total of approximately SEK 260 million in expected annual synergies before tax, reflecting a unique opportunity to create value for the shareholders of both companies,” writes SBB.
According to SBB, at least 90 percent of the owner of Entra must accept the offer for the deal to be implemented. The transaction must also be approved by the relevant competition authorities.
Joakim Goksör / TT
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