Entra buys Oslo Areal for $1.5 bln as Nordic real estate M&A continues (updated)

Fastighets AB Balder

03/12/2021 08:40

(Adds quote, detail)
    OSLO, Dec 3 (Reuters) - Norwegian real estate firm Entra
 ENTRA.OL  said on Friday it had agreed to buy rival Oslo Areal
for 13.55 billion Norwegian crowns ($1.48 billion), in the
latest twist of consolidation in the Nordic real estate sector.
    Entra is itself subject to a $4.1 billion bid from Swedish
rival Balder  BALDb.ST , with a deadline for owners to accept or
reject the offer by Dec. 7, but it remains unclear if that
takeover will succeed.  urn:newsml:reuters.com:*:nL1N2R81F5 urn:newsml:reuters.com:*:nFWN2RZ26F
    Oslo Areal's joint owners, Norwegian insurer Gjensidige
 GJFG.OL  and Swedish pension provider AMF Pensionsforsakring,
in late October said they were contemplating a sale of the firm,
of which they each own 50%.
    "This transaction enables additional profitable growth and
increased shareholder values in Entra going forward by utilising
our strong balance sheet," the chair of Entra's board, Siri
Hatlen, said in a statement.
    Sweden's Balder holds a 34% stake in Entra, and the board of
the Norwegian firm has recommended its owners to accept Balder's
bid or sell their stock on the open market.
    But Entra's other major shareholder, Swedish real estate
firm Castellum  CAST.ST , has not said whether it will divest
its 30.6% stake.
    Both Castellum and Sweden's SBB  SBBb.ST  have previously
attempted to buy Entra.  urn:newsml:reuters.com:*:nL8N2KU29H urn:newsml:reuters.com:*:nL8N2KE16N
    Castellum recently bought Swedish competitor Kungsleden in a
deal worth $3.1 billion.  urn:newsml:reuters.com:*:nL8N2P917G urn:newsml:reuters.com:*:nFWN2S91WM
    Gjensidige said it will book a profit of about 2 billion
Norwegian crowns from the sale of its stake in Oslo Areal.      
     
($1 = 9.1395 Norwegian crowns)

 (Reporting by Terje Solsvik, editing by Gwladys Fouche)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters
Messaging: terje.solsvik.thomsonreuters.com@reuters.net))