STOCKHOLM: Corem Property Group AB announced a public offer to the shareholders of Klövern AB to acquire all outstanding shares in Klövern in exchange for newly issued shares in Corem.

The Offer equals a consideration of approximately SEK 16.5 per ordinary share and SEK 323.0 per preference share in Klövern at the time of the Offer, based on the closing prices of each company’s ordinary shares of class A and class B, and preference shares, as of 26 March 2021.

Klövern’s ordinary shares of class A and class B as well as preference shares are listed on Nasdaq Stockholm, Large Cap. Corem’s ordinary shares of class A and class B as well as preference shares are listed on Nasdaq Stockholm, Mid Cap. The proposed merger of Corem and Klövern is expected to create significant value for all shareholders.

Corem has been one of Klövern’s largest shareholders since 2008. Corem’s holdings on the day of the Offer amounts to 11,875,000 ordinary shares of class A and 161,750,000 ordinary shares of class B, amounting to approximately 16.6 per cent of the outstanding share capital and 15.4 per cent of the outstanding votes in Klövern. Due to Corem’s large holdings, Corem exercises corporate governance by its representation in the Nomination Committee as well as in the Board of Directors of Klövern.

The proposed merger of Corem and Klövern is expected to create significant value for all stakeholders.

A merger of Corem and Klövern creates one of the largest listed real estate companies in the Nordic region, by combining Corem’s portfolio of logistics properties with Klövern’s broader real estate portfolio with a focus on offices.

The Combined Company will have a continued focus on growth regions, both in Sweden and internationally, while enabling a consolidation of the companies’ property portfolios, both of which are located in attractive metropolitan areas. In addition, the Combined Company will receive strong cash flows, a broad product and customer offering, and geographically complementary operations.

The merger would create a balanced property portfolio with good complementing qualities, as well as project development with good growth and return potential. The size of the Combined Company is expected to lead to increased interest from both Swedish as foreign investors.

Patrik Essehorn, Chairman of the Board of Corem, comments: “By combining Corem’s strong logistics property portfolio with Klövern’s concentration of office properties, we are creating one of the Nordic region’s largest real estate companies with a broadened product and customer offering. The merger enables Klövern’s shareholders with the opportunity to be part of joint future value creation, with a combination of strong cash flows, a broad project portfolio and a strengthened customer base, while the transaction creates synergies that are estimated at approximately SEK 200 million annually.

The market cap of the merged company is expected to increase the attention of both Swedish and foreign investors and create conditions for an improved credit profile with the aim of obtaining a rating equal to investment grade. In addition, a business-driven and experienced organization is created through the new company group.”

Corem is a Swedish public limited company based in Stockholm. Corem’s ordinary shares of class A and B as well as preference shares are admitted to trading on Nasdaq Stockholm, Mid Cap, under ticker symbols “CORE A”, “CORE B” and “CORE PREF”. www.corem.se