STOCKHOLM (Reuters). Swedish real estate company Castellum has offered to buy rival firm Kungsleden for SEK 26.9 billion ($ 3.13 billion), the company said in a statement Monday.
The proposal, consisting of 70% shares and 30% in cash, was immediately supported by Kungsleden’s board of directors in a separate statement shortly after the proposal.
“Through the merger with Kungsleden, we are strengthening our position as the leading commercial real estate company in Northern Europe with a focus on the most exciting growth regions,” Castellum Chairman Rutger Arnhalt said in a statement.
Castellum said Kungsleden has created an attractive commercial property portfolio with a strong balance sheet that will enhance Castellum’s competitiveness in the real estate market.
The offer values Kungsleden shares at 124 kroons per share, up 7.5% from Friday’s closing price.
The Kungsleden Management Board unanimously recommended that shareholders accept this offer.
(1 USD = 8.5989 SEK)
Colm Fulton’s Report; Edited by Simon Johnson