Norgani launches SEK 1.7 billion bid for 16 Swedish hotel properties (NO/SE)

Norgani Hotels ASA, the largest publicly listed hotel property company in the Nordic region, has announced a bid for the hotel property company Hotelleiendom AS. The total enterprise value of Hotelleiendom AS is SEK 1.7 billion (approx. €180m). The price offered by Norgani values the equity of Hotelleiendom AS at SEK 325 million and Norgani has already received acceptance for its bid from shareholders representing 81% of the shares.

Hotelleiendom AS comprises 16 hotels located in Sweden, all operated by Scandic. After completion of the transaction Norgani will own a total of 63 hotels with 10,382 rooms and a market value of NOK 6.4 billion. The 2006 gross rent level for Norgani will be approximately NOK 504 million.

The acquisition will be the largest made by Norgani to date, and it will strengthen Norgani's position in the Swedish market considerably. Furthermore it will strengthen already good relations with Hilton/ Scandic Hotels.

"The portfolio of Hotelleiendom is a perfect match with Norgani's existing portfolio both in terms of the properties itself and the geographical positioning. Through this acquisition we further strengthen our leading position in the Nordic hotel property market", says Norgani CEO Kjell Sagstad.

The transaction, which is subject to satisfactory due diligence, is expected to be completed before year end 2005.

Source: Norgani

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