Castellum updates the expected synergies amount from a combination with Entra, following the recent report from Moody's
- The Offer is not being made, and this press release may not be distributed, directly or indirectly, in or into, nor will any tender of shares be accepted from or on behalf of holders in, any jurisdiction (including without limitation Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or Switzerland) or the United States in which the making of the Offer, the distribution of this press release or the acceptance of any tender of shares would contravene applicable laws or regulations or require further offer documents, filings or other measures in addition to those required under Norwegian law. For further information, please see section entitled "Important notice" and "Notice for U.S. shareholders" below.
GOTHENBURG, Sweden, Nov. 30, 2020 /PRNewswire/ -- On 26 November 2020 Castellum Aktiebolag (publ) ("Castellum") announced the intention to launch a share exchange and cash offer to Entra ASA's ("Entra") shareholders (the "Offer"). Following the report from Moody's on the positive credit impact and long-term benefits of a combination with Entra, Castellum has updated the calculation of expected synergies from the combination
Castellum's Offer represents in excess of NOK 185 per Entra share and a superior proposition for all stakeholders
- Total synergies of at least SEK 300 million per year including SEK 150 million of cost synergies and SEK 150 million of financial synergies, following Moody's report on 27 November 2020 which stated that the combination of Castellum and Entra is credit positive and offers significant long-term benefits
- Entra shareholders will own approximately 28.2% of the shares in the combined company and will benefit from the value of these synergies. On a fully diluted basis, the synergies represent NOK 14 per Entra share of additional value, resulting in an all-in Offer value in excess of NOK 185 per Entra share
Castellum's Offer is fully financed and will deliver strong growth in income from property management and net asset value to all shareholders
- Upon completion of the Offer, Castellum's leverage will be in line with its stated financial policy. Castellum does not intend to raise additional equity in the market to finance the transaction
- The proposed combination is accretive to both the shareholders of Entra and Castellum and offers further value creation potential on top of the NOK 185 per Entra share from the joint development and active portfolio management of the combined business and harnessing of the combined operating platform for further growth. Castellum's income from property management per share, including synergies, is expected to increase by mid-to-high single digit percentages as a direct result of the combination, which will benefit both the existing shareholders of Castellum and Entra
- Following completion of the Offer, the combined group will be the leader in the Nordic real estate sector, a global leader in sustainability, and a model for best in class corporate governance
In summary, Castellum's Offer is superior in upfront price, immediate value proposition, future upside participation in the form of shares, strategic fit, corporate governance and capital structure.