Sweden's Klövern makes EUR 170m offer for peer

Swedish listed commercial property firm Klövern has launched a SEK 1.5 bn (EUR 170 mln) bid for peer Dagon.

The company is offering SEK 62.50 per share, split between 30% in cash and the rest in newly issued preference shares in Klövern.

Klövern operates mainly in central Sweden and acquiring Dagon would strengthen its position throughout the country.

Dagon’s SEK 5.6 bn portfolio has a broad geographic base across the country, including the thriving Öresund region. It consists of 125 properties and a rental value of SEK 648 mln.

Greater Stockholm and Öresund are the company's largest geographic areas in terms of value, accounting for 26% and 25% respectively of the property value.

If the takeover goes ahead, Klövern will own a property portfolio of 380 properties with a value of just over SEK 20 bn and rents of around SEK 2.2 bn.

To finance the cash element of the bid, Klövern has received acquisition financing of SEK 400 mln from Swedbank. Klövern also intends to refinance the acquisition facility by one or more bond issues.

Separately, Klövern has announced the appointment of Rutger Arnhult as new CEO, effective from 1 January.

Arnhult, currently CEO of the listed company Corem Property Group, has been a member of Klövern's board since 2009. Klövern's current CEO Gustaf Hermelin is leaving his post to become CEO of Brinova Fastigheter.