Europe-focused private equity firm Kildare Partners plans to enter Finland with the launch of an all-cash takeover offer for local office property specialist Technopolis in a deal valuing the firm's equity at €730 mln.
The bid, which will be made by the group's European Partners II fund, is being recommended by the company's management and has already received the support of Technopolis' two largest shareholders representing over 34% of the group's share capital, Varma Mutual Pension Insurance Company and Mercator Capital.
Kildare is offering €4.65 in cash for each Technopolis share, representing a 13.7% premium to the closing price of €4.09 on the day prior to the announcement, and a 19.5% premium to the company's volume-weighted 3-month average trading price of €3.89.
The offer is expected to run from September 7 to October 8, 2018.
Technopolis owns a portfolio last valued at €1.57 bn, exclusively focused on office campuses and business parks. The properties covering over 700,000 m2 are largely located in Finland with a minority in other Scandinavian countries and in the Baltics.
Commenting on the bid, Technopolis' board chairman Juha Laaksonen said he considers the bid price 'to be fair to Technopolis’ shareholders'. 'We are pleased that the Offeror has expressed appreciation of the quality of Technopolis’ management and personnel, and is impressed by Technopolis’ business model and operations. We believe this lays a strong foundation for the future growth of Technopolis.'
'I am confident that this deal will open up a whole new set of growth opportunities for Technopolis, both at home and abroad,' added CEO Keith Silverang.
Jay McLennan, president of Kildare Partners, sees the transaction as an opportunity to expand in the Nordic and Baltic Sea regions. 'The offer will represent a major step for Kildare Partners in building a footprint in the region, together with continued expansion into prime, dynamic office solutions,' he noted.
Founded in 2013, Kildare Partners has raised over €3.5 bn of discretionary, equity capital commitments from an institutional group of investors which includes pension funds, endowment funds and sovereign wealth funds. The firm is active in the UK, Germany, the Netherlands, Ireland, Italy, Sweden, Norway, France, Portugal and Belgium.
Kildare plans to take full control of the group and de-list its shares from the Nasdaq Helsinki stock exchance as soon as 'practicable' in order to merge the business with its European platform. The bid is conditional upon tendering at least 90% of the company's stock.
Kildare is being advised by JP Morgan on the deal while Technopolis has appointed Skandinaviska Enskilda Banken as financial adviser.