Kungsleden divests 65% of Nordic Modular Group to Inter IKEA Investments with a sales price equal to a valuation of the entire company of 1.3 billion SEK (€140 million). With the transaction Kungsleden will release net funds of approximately SEK700 million (€75.5 million). The released funds will be used to purchase properties in accordance with Kungsleden’s strategy.
Biljana Pehrsson, CEO at Kungsleden, comments: “Kungsleden today takes yet another important step towards realizing our business strategy. The main direction in Kungsleden’s new strategy is to own, manage and develop commercial properties in growth regions in Sweden. Since the new strategy was presented almost two years ago, Kungsleden’s explicit intention has been to sell Nordic Modular Group as its business is separate from the Group’s core business. We are very satisfied with today’s deal with Inter IKEA Investments.
Kungsleden releases funds enabling us to acquire properties in line with our strategy for approximately SEK1.8 billion (approx. €194 million). We will keep a 35% stake in Nordic Modular Group and will continue to benefit from the company’s proceeds and growth potential. Nordic Modular Group has great potential on the modular market and we are confident that additional value will be created in the company during Inter IKEA Investments ownership and professional governance. This is why we believe that the deal with Inter IKEA Investments is in Kungsleden’s shareholders’ best interest.”
Henrik Jonsson, CEO Inter IKEA Investments AB, comments: “We like companies with a clear direction, a strong management and good profitability. Nordic Modular Group fits this description well and we look forward to develop the company together with Kungsleden and the management team.”