Swedish Castellum offers to buy real estate firm Kungsleden for $ 3 billion

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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

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