Castellum launches €2.6b bid to take over peer Kungsleden

Stockholm-listed real estate firm Castellum has launched a takeover bid of its commercial property peer Kungsleden worth SEK 26.9 bn (€2.6 bn).

The offer values Kungsleden's shares at SEK 124 per share, a 7.5% premium on the closing price last Friday. Castellum is offering 70% in shares and 30% in cash.

Kungsleden's board unanimously recommended shareholders to accept the public offer.

In a statement, Castellum's board said: 'Through the combination, two highly professional and competent organisations are combined. Following the completion of the combination, the board of directors in Castellum will offer Biljana Pehrsson, CEO of Kungsleden, and Ylva Sarby Westman, Deputy CEO and CFO of Kungsleden, to become CEO and deputy CEO, respectively, for the combined company.

'Castellum believes that the management and employees of Kungsleden have built a very successful company with an attractive commercial property portfolio in Sweden. Castellum expects that the proposed combination of the businesses will be positive for both companies and lead to attractive opportunities for the employees of Kungsleden and Castellum.'

At full acceptance of the offer, Kungsleden's shareholders would have an ownership in the combined company of approximately 22.5% of the outstanding capital and votes in Castellum, and existing shareholders of Castellum an ownership in the combined company of 77.5%.

The acceptance period for the offer is expected to commence on or around 30 September and end on or around 29 October. The offer is conditional upon Castellum becoming the owner of more than 90% of the shares in Kungsleden, plus any necessary clearances from the competition authorities.


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