KKR revises conditional offer for Avida Finans

KKR will now pay NOK 236m for a 15.2% stake in the company, instead of NOK 300m.

The US-based GP had in February 2020 entered into an agreement to acquire the minority stake in the Oslo-listed company for NOK 300m via its investment company Eckern Finans. 

However, KKR last week notified Avida that it was planning to terminate the agreement due to alleged breaches of warranties by Avida and that it was willing to discuss "a new revised transaction on amended terms."

The company's board of directors is now seeking a commercial settlement and has signed a revised subscription agreement, which will be put to its existing shareholders to vote on at its extraordinary general meeting on 12 June 2020. 

The net proceeds will be used to strengthen Avida's capital situation "at a time of significant uncertainties and with attractive growth opportunities in the markets", according to a notice published on Avida's website.

The completion of the private placement is subject to the satisfaction of KKR and the approval of existing shareholders, as well as regulatory approval. 

The transaction was previously expected to close in the third quarter of 2020. 

Company
Established in 1983, Avida Finans provides loans, factoring, corporate credit and financial protection services to businesses and individuals in Sweden, Norway and Finland.

The company is headquartered in Stockholm, with branches in Oslo and Helsinki, and employs around 100 staff.

People
Avida Finans – Tord Topsholm (CEO); Geir Olsen (chairman).

Adviser 
Equity – Paul Weiss (legal).

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