On Friday, Royal Unibrew A / S entered into an agreement with Borg Invest to purchase an additional 75 per cent of the shares in Hansa Borg Breweries, the Danish listed company thus becoming the sole owner of Norway’s second largest brewery.
Royal Unibrew pays NOK 2.5 billion (DKK 1.8 billion) for the remaining shares in the brewery group, which is thus valued at NOK 3.3 billion (DKK 2.4 billion), according to a stock exchange announcement from the Danish group.
During the first ten minutes of trading on the Copenhagen Stock Exchange, the Royal Unibrew share is up 1 percent to NOK 764.4.
Pays in shares
Around 10 percent of the purchase price, NOK 231 million, will be paid in cash when the purchase is completed, while the remainder will be paid in 2.2 million Royal Unibrew shares. The acquisition is conditional on a green light from the Norwegian Competition Authority, which the parties expect will be in place during the first half of the year.
– The company is today well positioned for further growth, and we believe that Royal Unibrew is a strong and long-term industrial owner who can take the business to the next phase. The transaction gives us the opportunity to continue to be involved as more indirect owners, as the payment will mainly be in Royal Unibrew shares, says chairman of the board of Borg Invest, Thor Bendik Weider in a comment.
CEO Lars Giil says Hansa Borg is at a crossroads where they see a need for major upgrades to the facilities in order to have a sustainable and more efficient future operation.
Hansa Borg is behind brands such as Hansa, Borg, CB and Grevens, in addition to the portfolio consisting of international brands such as Heineken, Breezer, Clausthaler and Bang Energy. The group also owns Olden Brevatn, Nøgne Ø and Vinestor.
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