Reference is made to the stock exchange announcement on 29 April 2021 regarding the contemplated purchase of the following hotel-owning companies by Pioneer Hotel Properties AS, a wholly owned subsidiary of Pioneer Property Group ASA, from Hospitality Invest AS and its wholly owned subsidiary Hi Capital AS:
I) Brennemoen Hotel Eiendom AS, which owns Scandic Brennemoen Hotel;
II) Guard Hotell AS and Guard Hotell II AS, which own Park Inn by Radisson Airport Hotel;
III) Strand Hotel Borgholm Fastighets AB, which owns Strand Hotel Borgholm; and
IV) Köping Hotellfastighet AB, which owns Best Western Hotel Scheele.
Share purchase agreements have today been entered into for the respective transactions, and the transactions have been successfully completed. The total valuation of the companies was NOK 566.6 million. Total purchase price, adjusted for net debt and other customary balance sheet adjustments, including repayment of shareholder loans to Hospitality Invest AS, was NOK 389.7 million.
The purchase price has been settled through a cash consideration of NOK 30.8 million and through bonds in Norlandia Health & Care Group AS (“NHC”) as payment in kind, with the following par values: i) NHC01: NOK 196 million and ii) NHC02: SEK 163.5 million, at the following bond prices (based on broker quotes): i) NHC01: 100.375 and ii) NHC02: 100.375.
Pioneer Property Group ASA holds no bonds in NHC following the transactions.
For further information, please contact:
Ole-Kristofer Bragnes, CFO
Telephone: +47 917 03 415
E-mail: IR@pioneerproperty.no