Ikea Group, the Swedish home furniture retailer, has acquired the remaining stake it did not already own in temporary building specialist Nordic Modular Group (NMG) from listed Group Kungsleden in a deal valuing the company at SEK 1.45 bn (€160 mln).
Ikea Group, the Swedish home furniture retailer, has acquired the remaining stake it did not already own in temporary building specialist Nordic Modular Group (NMG) from listed Group Kungsleden in a deal valuing the company at SEK 1.45 bn (€160 mln).
Inter Ikea is buying the 34.5% stake in Nordic Modular Group for €56 mln.
Last year, it acquired an initial 65% stake from Kungsleden for €91 mln, in a deal valuing the Group at €140 mln.
'Kungsleden today takes an additional important step in its refinement of the corporate strategy to own, manage and develop commercial properties in Sweden’s growth regions, by divesting the remaining part of our shares in Nordic Modular Group,' said Biljana Pehrsson, CEO of Kungsleden.
The NMG activities were deemed to be no longer a core business of Kungsleden three years ago.
After selling most of the shares last year, Kungsleden said it accepted an offer by Inter IKEA Investments to acquire the remaining shares. 'NMG’s positive development is noticed in that the price obtained for the remaining shares is based on an Enterprise Value of SEK 1.45 bn, which is SEK 150 mln higher than a year ago,' added Pehrsson.
The deal frees up SEK 330 mln in cash for Kungsleden. Pehrsson: 'Expressed as acquisition capacity the released liquidity would allow us, with an LTV ratio of 60%, to acquire properties at a value of SEK 850 mln in line with our strategy.'
The transaction is expected to be finalised no later than January 31, 2016.