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The Swedish real estate company Balder Ab announced on Tuesday that it has acquired further in the Norwegian Oslo Stock Exchange-listed company Entra.
On Tuesday, Balder bought 610,059 shares in Entra, which means that the Swedish company now has an ownership share of 33.67 percent. As a result, Balder will place a mandatory bid for all Entra shareholders.
When purchasing more than one third of the votes in a company listed on the Oslo Stock Exchange, an offer obligation is triggered. This means that the buyer is obliged to give the remaining shareholders in the company an offer to buy their shares.
Bids will be a minimum of 36.86 billion.
The mandatory bid must be at least NOK 202.5 per share, which is the highest price Balder has paid for Entra shares in the last six months, adjusted for the dividend paid in October 2021. A bid of NOK 202.5 per share will value Entra to close to 36.86 billion kroner.
In comparison, Entra had a market value of 35.3 billion on the Stock Exchange on Tuesday. When the Oslo Stock Exchange closed on Tuesday, the Entra share was traded for NOK 193.90. The Entra share has fallen 6.6 percent in the last three months, but is up over 50 percent in the last year.
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Earlier in October, DNB Markets downgraded the price target on the Entra share to NOK 185, from the previous NOK 190.
Prefers that Entra is listed on the stock exchange
Since the end of last year, Balder has bought shares in Entra. When the Swedish company crossed five percent ownership in Entra last year, Balder CEO Erik Selin said that it did not intend to submit a bid for the entire Norwegian company.
The stock exchange announcement from Balder on Tuesday states that it still prefers that Entra be listed on the Oslo Stock Exchange, but that at the same time it is desired to increase the ownership share.
– We prefer that Entra continues as a listed company on the Oslo Stock Exchange. The company is well managed, has a fine real estate portfolio and good management that over time will create value for the company’s stakeholders. We see Entra as a good long-term investment and do not intend to submit a bid for the entire company, Selin told TDN Direkt in December last year.
Swedish bidding war
Earlier this autumn, it was announced that the Swedish real estate company Castellum has bought Folketrygdfondet’s shares in Entra. Following the transaction, Castellum also owns more than 30 percent of the shares in Entra.
Previously, there has been an intense bidding war between Castellum and another Swedish real estate company, SBB.
In June, SBB chose to throw away its remaining shares in the Norwegian real estate company. On 14 June, the news came that SBB had sold all its Entra shares to Castellum.
The two Swedish real estate companies Castellum and Balder are thus Entra’s largest shareholders.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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