CapMan to acquire Finnish investor Norvestia in €118m deal

The deal will see CapMan offer shareholders of Norvestia – an investor in listed assets and provider of growth capital to private companies – six CapMan shares for each Norvestia share, which would value the exchange offer at €117.9m. The value includes an extraordinary dividend recommended by Norvestia's board of 335 cents per share to be paid out to its shareholders.

Less the dividend, CapMan's offer represents a 23.2% premium to the volume-weighted average of Norvestia's shares in the 30-day period leading up to the offer. Ahead of formalising the bid, CapMan held a 28.7% stake in Norvestia. The GP will endeavour to pay out at least 75% of its earning per shares as dividends after the merger is completed.

CapMan said in a statement it expects the merger to generate cost and financing synergies of more than €3m a year, and will convert its A- and B-share structure into a singular B-share structure as part of the merger. Norvestia's board has recommended its shareholders accept the bid.

A group of shareholders, including CapMan, representing a stake of around 50.8% in Norvestia has agreed to vote in favour of the exchange at the extraordinary general shareholder meeting called to discuss the deal. The GP became a cornerstone in Norvestia in May 2015, when it acquired enough shares to be the largest single shareholder.

CapMan believes a combined entity will allow for a reduced dependency on external funding, while strengthening its investment capacity.

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• Topics
• GPs
• Nordics
• Restructuring
• Finland
• CapMan