Aedifica bids for Finland's Hoivatilat, to create €3b healthcare giant

Belgian healthcare REIT Aedifica has unveiled plans to launch a takeover bid for Finnish peer Hoivatilat, to spearhead growth into the Nordic region. 

According to Aedifica, its voluntary public tender offer for the Nasdaq Helsinki-listed firm comprises an offer of €14.75 per share, equivalent to an equity value of €375 mln, valuing the firm at an enterprise value of €577 mln. Hoivatilat has net financial liabilities of around €202 mln.

Aedifica holds a portfolio of more than 260 sites in Belgium, Germany, the Netherlands and the United Kingdom, worth more than €2.3 bn. The REIT has a market capitalisation of €2.6 bn, as of November 1.

Hoivatilat is a Finnish healthcare real estate investment company with a build-and-hold strategy, that focuses on elderly care homes, specialist care homes and children day-care centres. It has an existing portfolio of 127 healthcare properties in Finland, with a committed development pipeline of 55 projects in Finland and Sweden, let to 46 private and public operators. Its weighted average lease term is 13 years.

Stefaan Gielens, CEO of Aedifica, commented: 'Aedifica is pleased to announce the launch of a tender offer on all shares of Hoivatilat Plc, a listed Finnish healthcare real estate development and investment company. Since our tender offer is recommended by Hoivatilat’s board of directors and viewed positively by executive management, we have full confidence in a successful conclusion of this transaction.

'Hoivatilat is an attractive partner to enter into the Nordic healthcare real estate market with a high-quality, purpose-built portfolio, a large pipeline of projects and a very experienced management team. Moreover, both companies share the same values and long-term commitment.

'Given Aedifica’s international growth track record and Hoivatilat’s proven build-and-hold strategy, this landmark transaction provides an excellent platform for the combined group’s future growth in the Nordics. This transaction will further establish the Aedifica group as the European market reference in listed healthcare real estate.'

Pertti Huuskonen, chairman of the board of directors of Hoivatilat, commented: 'The change of ownership is a logical and very positive next step in Hoivatilat’s growth story. Aedifica is an ideal new owner for Hoivatilat, because it has 15 years of industry experience and is already operating in Belgium, Germany, the Netherlands and the United Kingdom. The new owner brings in strong financial resources and extensive European experience in care housing, which will support Hoivatilat’s future growth in Finland and Sweden.

'Due to highly complementary competences, we see many benefits in this transaction. I am delighted about Aedifica´s strong responsibility values with regard to community development, which has always been important for Hoivatilat.'

'Executive management views the tender offer positively and we are excited to start the next chapter of our journey under the ownership of Aedifica. We believe that the values that our companies share, creating a better society and new service models for an ageing and urbanising Europe, lays a strong foundation for the future. We look forward to continue delivering on our growth agenda, serving existing and new customers and further developing our concepts in cooperation with our partners and with the support of Aedifica,' said Jussi Karjula, CEO of Hoivatilat.

According to Aedifica, the offer period commences November 11, ending December 2. Aedifica said it expected to have a preliminary result from the bid by December 3, with a final result on December 5, and clearing and settlement scheduled for December 9.

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