On Tuesday 16-Jun, Veidekke ASA (“Veidekke”) announced the sale of its property development business in Norway and Sweden (“Veidekke Eiendom”) to Residential Holding, a consortium comprising Fredensborg AS, Norwegian Property ASA and Union Real Estate Fund III Holding, for an enterprise value of NOK 8.75bn. The transaction will generate cash proceeds to Veidekke of NOK 7.7bn and a result of approximately NOK 1.2bn. The Board of Veidekke will following the transaction propose an extraordinary dividend payment of NOK 20 per share, and indicate further distributions in the near future.
Veidekke Eiendom is one of Scandinavia’s largest residential developers, with a land bank comprising more than 18,000 units in and around the largest population centres of Norway and Sweden. After the sale of the property development operation, Veidekke will be a focused Scandinavian construction group with a strong market and financial position.

Published: 16 Jun, 2020

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