Samhällsbyggnadsbolaget I Norden AB (“SBB”) and OBOS have initiated a strategic collaboration with a focus on social sustainability. The collaboration includes the development of more attractive housing opportunities for OBOS members in Norway and Sweden and aims to support SBB’s ambition to contribute to the construction of important social infrastructure in the Nordic region. As a first step in the collaboration, SBB has sold its shares in Solon Eiendom ASA (“Solon”) to a company jointly owned by SBB and OBOS, Solon Eiendom Holding AS (“Solon Holding”). The share price in the transaction has been set at NOK 44, which gives SBB NOK 1.6 billion in net cash consideration.
Through Solon Holding, SBB and OBOS will strive for collaborations with Solon that match each company’s profile; SBB in social infrastructure and real estate aimed at public actors and OBOS for management services for tenant-owner associations and owners, project and construction management and the financing of home purchases. OBOS members in Norway and Sweden will have a right of first refusal to Solon’s over 8,000 future homes in Viken, Oslo, Stavanger, Kristiansand and Stockholm, as well as the large number of homes that will be developed in the future through the strategic collaboration between SBB and OBOS.
Through the broader strategic collaboration, SBB and OBOS will identify common business opportunities in social infrastructure. Furthermore, OBOS members will have a right of first refusal on first-time sales of all condominiums in Norway and Sweden offered by Solon or companies owned by OBOS together with Solon and / or SBB. Finally, OBOS will have the right to develop building rights with tenant-ownership potential in SBB’s project portfolio until 31 December 2028.
SBB’s and OBOS’ joint company and projects will be run with a focus on safety, proper pay and working conditions at construction sites as well as satisfied customers. Furthermore, they must have an offensive environmental and sustainability profile that matches SBB’s and OBOS ‘existing ambitious goals in climate and the environment. The parties will strive to use OBOS affordable housing modules that lower the threshold into the housing market.
Over the years, SBB has come to know OBOS as a long-term and reliable member-owned housing developer. We are therefore pleased to initiate this strategic collaboration where we use our respective strengths and work together to create more attractive housing for OBOS members in Norway and Sweden, while looking for business opportunities that will strengthen SBB’s growth within social infrastructure. The collaboration is in line with SBB’s focus on sustainability, where we already have the real estate sector’s highest rating in social sustainability. Together, SBB and OBOS will contribute to social sustainability by facilitating the use of OBOS housing modules in joint projects as much as possible to make the homes accessible to as many people as possible,” says Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB.
“I am very happy that OBOS and SBB are entering into this strategic collaboration for the development of nice and attractive housing for OBOS members in Norway and Sweden. Solon builds attractive homes with high quality and exciting architecture and has a strong management team. The collaboration contributes to us fulfilling the members’ desire to prioritise our investments in the core business in order to increase housing construction and thereby significantly strengthen the offer to our members,” says Daniel Kjørberg Siraj, CEO of OBOS.
As previously announced by SBB, SBB will launch a mandatory offer for the remaining shares in Solon Eiendom ASA by 22 December 2021. The mandatory offer will be launched as planned and all shares acquired by SBB in such mandatory offer and/or subsequent compulsory acquisition will be transferred to Solon Holding on the same terms as above.
SBB’s sale of the shares in Solon to Solon Holding will also trigger an obligation for Solon Holding to launch a mandatory bid for the shares in Solon in accordance with section 6-1 of the Norwegian Securities Trading Act unless an exemption is granted by Oslo Stock Exchange in its capacity as take-over authority. Unless such exemption is given or a compulsory acquisition by SBB has been completed, such mandatory offer may run in parallel or come subsequent to the mandatory offer that will be launched by SBB on 22 December 2021. The offer price will be NOK 44 in both mandatory offers.
For further information, please contact:
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, [email protected]
The information was submitted for publication, through the agency of the contact person set out above on 20 December, 2021, at 08:45 CET.