OSLO: Veidekke ASA today completed the sale of its property development operation to the consortium comprising Fredensborg AS, Fredensborg Bolig AS, Norwegian Property ASA and Union Real Estate Fund III Holding AS, a news release said.
In line with the agreement entered into on 16 June 2020, Veidekke has received a consideration of NOK 7.1 billion on a debt-free basis.
The buyer takes over the operation based on a company value of NOK 8.75 billion, including working capital, taxes and other debt items. The transaction generates a book gain for Veidekke of approximately NOK 1.2 billion, which will be recognised in the income statement in the third quarter. The divestment of Veidekke’s property development operation has now been completed.
“This is an important day. The process of splitting Veidekke, to divest the property development operation, has been extensive and of strategic importance for Veidekke. With the sale completed, Veidekke is a streamlined construction company, with a solid financial position that provides a strong basis for further development of the business. While it is sad to see good colleagues go, it is good to know that they have a solid and enthusiastic new owner, with whom we look forward to working in the years ahead,” says Jimmy Bengtsson, CEO of Veidekke ASA.
ABG Sundal Collier and the law firm Schjødt served as, respectively, Veidekke’s financial and legal advisers in the process. The consortium’s advisers were Arctic Securities, DNB Markets, PWC, and the law firms Thommessen in Norway and Vinge in Sweden.
Veidekke is one of Scandinavia’s largest contractors. Undertaking all types of building and civil engineering contracts, the group also maintains roads, and produces asphalt and aggregates. The company emphasizes stakeholder involvement and local experience. The annual turnover is NOK 37 billion, and half of the 8,200 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit every year since its inception in 1936.
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