Swedish real estate company Klövern AB made a cash offer to the shareholders of local peer A Group Of Retail Assets Sweden AB (publ), or Agora, for all of its ordinary class A, class B and preference shares, in an approximately 936 million-kronor deal.
Klövern made the offer through its subsidiary Dagon Sverige AB, offering 30.00 kronor each for the 4,689,062 class A and 23,184,669 class B shares it does not already own, and 275.00 kronor for each of the outstanding 363,640 preference shares.
The offered price represents a premium of 59.6% on class A and class B shares, and a 6.6% premium on preference shares to their value at the close of business on Oct. 4.
The offeror owns 2,909,342 class B shares, or about 9.3% of the share volume of Agora, corresponding to 4% of the voting volume. The offer values all shares in Agora, including the shares held by the offeror, at approximately 1.02 billion kronor.
Upon the acceptance of the offer, Klövern will own 93.7% of the shares and 97.3% of the votes in the target company.
The acceptance period for the offer starts Oct. 12 and ends Nov. 9.
Klövern also noted that shareholders in Agora representing approximately 76.0% of the shares and 89.8% of the company votes have irrevocably undertaken to accept the offer, while those representing approximately 8.4% of the shares and 3.6% of the votes are positive to the offer.
The offeror will fund the offer using cash and available credit facilities via Klövern.
JLL and Swedbank are the financial advisers, while Vinge is serving as the legal adviser to the offeror and Klövern.
As of Oct. 3, US$1 was equivalent to 9.03 kronor.