Publicerad: 30 November 2018, 20:15
Investment giant EQT has, through its wholly owned subsidiary Chicago Holding, made a public bid for listed Stendörren Fastigheter. The bid is a cash bid and amounts to SEK 100.25 per A and B share in Stendörren, meaning that Stendörren is valued at just over SEK 2.8 billion.
The bid represents a premium of 3.8% given the Monday closing price of Stendörren’s B share (SEK 96.6 per share) and 23.5% compared to the volume-weighted average rate (SEK 81.2 per share) in the past 12 calendar months. Furthermore, the bid represents a premium of 0.25% compared to Stendörren’s EPRA NNAV, the current net asset value at the end of the third quarter, but a discount of 8.5% given EPRA NAV, the long-term net asset value at the end of the quarter.
In a press release, EQT writes that it considers Stendörren to be a well-managed real estate company that owns, develops and manages industrial and logistics properties within the Greater Stockholm and Mälardalen area. It is further stated that:
“EQT Real Estate has been following Stendörren for a long time and is impressed by Stendörren’s strong and stable development. The large number of unutilised building rights offers an opportunity to further develop its property portfolio, which is well in line with the EQT Real Estate strategy to invest in assets with development potential.
EQT Real Estate believes that the increased investment rate required to develop the building rights is suitable for private ownership, since Stendörren’s earnings could decrease during a transitional period. EQT Real Estate estimates that the Offer is financially attractive to Stendörren’s shareholders.”
Some of Stendörren’s largest owners, including the main owner Kvalitena and company chairman Knut Pousette, have accepted the EQT bid, achieving an acceptance of 50.06% of the total votes.
Stendörren board member Seth Lieberman is also part of the EQT Real Estate investment committee, why he is considered a related party of the bidder, even though he was not involved in the decision-making process concerning the bid.
Commenting the bid, Stendörren writes that it acknowledges that the bid has been made and that Handelsbanken Capital Markets and law firm Vinge have been appointed as advisors. Stendörren has appointed a bid committee where Knut Pousette and board member Seth Lieberman, who also has accepted the bid, are considered biased. The bid committee is headed by board member Jenny Wärme.
EQT’s acceptance period for the bid expires on 19 December, and within two weeks, Stendörren’s bid committee is expected to give its opinion on the bid.