The Norsk Gjenvinning Group receives offer for real estate portfolio
In August 2015, Norsk Gjenvinning announced that the Group had decided to explore a full range of strategic and financial alternatives to optimize the value of the Group's property holdings, including properties that will still be in use by Group companies. In addition to outright property sales, the Group announced that options could include sale and lease back transactions for selected Norsk Gjenvinning properties.
As a result of this process, Norsk Gjenvinning received an offer on May 20th, 2016 from a leading Nordic investor for the purchase of a property portfolio consisting of five (5) Norsk Gjenvinning properties on sale and lease back terms. The offer is subject to financing and successful due diligence.
The Board of Norsk Gjenvinning Norge AS in its board meeting on May 26th, 2016 decided to accept the offer, subject to final Board approval, and granted the bidders exclusivity until July 1st, 2016 to finalise the transaction.
The offer was at a property value of NOK 766.8 million. Annual leases for the properties will be approximately NOK 50.9 million. If the transaction is finalized, the Norsk Gjenvinning Group will receive net proceeds of approximately NOK 690 million, after tax adjustments and transaction costs. The proceeds will be used to redeem bonds in the Norsk Gjenvinning Senior Secured Callable Bond Issue 2014/2019 according to the Bond agreement’s paragraph 14.6. The book value of assets of the properties in question is approximately NOK 200 million.
Norsk Gjenvinning will revert with more information at or around July 1st, 2016.
For further information, please contact:
Dean Zuzic, CFO
Phone: +47 414 33 560