Office wars

26 Nov 2020 By Aimee Donnellan Follow @aimeedonnellan

Sweden’s Castellum launched an offer for Entra days after the Oslo-based group rebuffed a bid from real estate rival SBB. Reliable government tenants and a relatively stable economy are alluring in a sector ravaged by the pandemic. But the bidders will struggle to create value.

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Real estate company Castellum on Nov. 26 launched a 31 billion Norwegian crown ($3.4 billion) cash-and-shares takeover bid for Norway’s Entra, exceeding a rival offer from Sweden’s SBB.

Entra had rejected Castellum’s initial approach on Nov. 25 saying it wanted to remain independent. Following Castellum’s offer, it said it would evaluate the bid.

Castellum is offering 13 new shares for every 20 Entra shares, and 25.68 Norwegian crowns in cash per Entra share. The offer values each Entra share at 170.9 Norwegian crowns, based on closing share prices on Nov. 23, the day before SBB launched its offer for Entra.

SBB had previously offered 165 Norwegian crowns per Entra share, of which 115.5 Norwegian crowns was in cash and the remainder in new SBB shares.

Entra shares were trading at 175 Norwegian crowns, up 3.8%, by 1030 GMT on Nov. 26. Castellum shares were broadly unchanged at 214 Swedish crowns.

Context News

Real estate company Castellum on Nov. 26 launched a 31 billion Norwegian crown ($3.4 billion) cash-and-shares takeover bid for Norway’s Entra, exceeding a rival offer from Sweden’s SBB.

Entra had rejected Castellum’s initial approach on Nov. 25 saying it wanted to remain independent. Following Castellum’s offer, it said it would evaluate the bid.

SBB had previously offered 165 Norwegian crowns per Entra share, of which 115.5 Norwegian crowns was in cash and the remainder in new SBB shares.

Entra shares were trading at 175 Norwegian crowns, up 3.8%, by 1030 GMT on Nov. 26. Castellum shares were broadly unchanged at 214 Swedish crowns.

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