Aker Property Group, or APG, a wholly owned subsidiary of Aker ASA (AKAAF, AKER.OL), Tuesday announced an agreement to acquire ownership interests in Public Property Invest ASA or PPI, and Samhallsbyggnadsbolaget i Norden AB.
With this, TRG Real Estate AS, a company indirectly controlled by Kjell Inge Røkke, Chair of Aker ASA, will sell an industrial property portfolio to PPI for NOK 2.325 billion, in exchange for 124.398 million new shares in PPI at NOK 18.69 per share.
TRG has agreed to transfer the right to receive 39.808 million PPI Shares to SBB I Norden AB, which is an indirect wholly owned subsidiary of SBB. In exchange, TRG Real Estate will receive 164.561 million class B-shares in SBB, representing about 9.08 percent of SBB's share capital and 4.44 percent of the voting rights.
TRG has agreed to transfer to APG the right to receive both the SBB shares and the remaining 84.589 million PPI Shares that were not transferred to SBB I Norden at the same valuation as agreed with PPI and SBB.
Post transaction, APG will be the second largest shareholder in PPI with about 24.58 percent of the shares and votes. Additionally, it will own about 9.08 percent of the share capital and 4.44 percent of the votes in SBB. Through SBB I Norden, SBB will continue as the majority shareholder in PPI with about 33.4 percent of the shares.
Øyvind Eriksen, CEO of Aker ASA said: "The transaction with PPI aligns with Aker's strategy to concentrate our portfolio on fewer, cash-generative investments. PPI is a solid company with a an opportunistic growth strategy focused on value-accretive transactions. Its low-risk profile and predictable dividend payment strategy further underscores the strong fit with Aker's plans to increase the real estate exposure over time."
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