Skandia Life Insurance has entered the race for Swedish property company Diligentia.
The company, a division of financial services group Skandia, has offered SKr90 per share for Diligentia, representing a 27% premium on Diligentia’s share price last week. The price, which totals SKr5.6bn, represents a 35% premium on the company’s share price before the bid from property company Castellum.
Skandia Life’s bid is the third this year following offers from Castellum in January and Balder in March.
Skandia Life said its offer stemmed from its need to increase the percentage of its investment in real estate. At present, just 9% of Skandia Life’s SKr250bn total investment is in property. The company also said that Diligentia’s portfolio was a good match by use and geographical locations.
Skandia Life’s real estate portfolio is now managed by Jones Lang LaSalle Asset Management Services, a joint venture between Skandia Life and JLL. Skandia Life said this new organisation could be complemented by Diligentia’s team.
Castellum is maintaining its bid for the company which is on the basis of one newly issued share in Castellum for each share held in Diligentia. Any acceptance by Castellum’s shareholders for Diligentia can be recalled by 27 March.
Skandia Life will publish a prospectus on 15 April and would hope to complete any deal by the end of May.
Handelsbanken Investment Banking and Leimdörfer Bernhardtson Westberg & Partners are advising Skandia Life.
Balder’s offer for Diligentia was thought to be a move to counter a bid by Drott for Balder. Balder’s shareholders’ association Aktiespararna has since advised shareholders to reject the SKr140 per share bid. The association believes that the bid is too low.
