Kungsleden divests its remaining share of Nordic Modular Group (34.5%), to Inter IKEA Investments. The price relates to the valuation of the company at SEK1.45 billion (€160m) (Enterprise Value). The transaction will release funds of approximately SEK330 million.
Kungsleden divested 65% of Nordic Modular Group to Inter IKEA Investments in November 2014, releasing approximately SEK700 million (€76m). The divestment is part of Kungsleden’s strategy to own, manage and develop commercial properties in growth regions in Sweden, prompting them to sell their Nordic Modular Group.
Biljana Pehrsson, CEO Kungsleden AB (publ) comments: “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 (NMG) to Inter IKEA Investments AB, who acquired 65 percent of NMG from Kungsleden a year ago.
Since Kungsleden three years ago presented the new corporate strategy our explicit intention has been to divest all of NMG as its operations are separate from Kungsleden’s core business. A first step was made last year when the majority of NMG was sold. During the past year NMG has developed favourably. Inter IKEA Investments has now offered to acquire the remaining shares and we have accepted. 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 billion, which is SEK 150 million higher than a year ago.
We are very satisfied with the deal we have made today with Inter IKEA Investments. Kungsleden releases approximately SEK 330 million in liquidity, which increases our financial flexibility. Expressed as acquisition capacity the released liquidity would allow us, with an LTV ratio of 60 percent, to acquire properties at a value of SEK 850 million in line with our strategy.”
The transaction is subject to approval from the Swedish Competition Authority and is expected to be finalised no later than January 31, 2016.
