Heimstaden AB has agreed to divest 100% of the shares in the Icelandic residential real estate company Heimstaden ehf. to Fredensborg AS. The transaction will close in October 2023.
The purchase price paid upon closing of the transaction amounts to c. €129m. A further deferred purchase price in the range c. €75m - €83m will be paid when Fredensborg AS has completed the exit strategy of Heimstaden ehf., as initiated by Heimstaden AB. In addition, the purchase price mechanism includes a performance based earn out element based on the total consideration received by Fredensborg AS at an exit from Heimstaden ehf. If the exit strategy isn't completed within 36 months after closing and the deferred purchase price remains unsettled, Heimstaden AB can, under specific conditions, request a transaction reversal.
The divestment follows the communicated strategy to continue the deleveraging of Heimstaden AB and the proceeds will be used for liability management purposes.
CEO Helge Krogsbol commented: "The sale of Heimstaden’s Icelandic portfolio offers an attractive opportunity to accelerate our exit from the Icelandic market, advance our deleveraging, and capture a significant portion of the ongoing exit strategy's upside."
Since Fredensborg AS is Heimstaden AB’s largest shareholder, the Board has prepared a statement on the acquisition corresponding to the requirements in the Swedish Companies Act and a fairness opinion on the acquisition has been obtained from KPMG.
