Gothenburg, March 28, 2000
Castellum's Board of Directors has decided that the offer to the shareholders of Diligentia, which was announced on January 18, will not be implemented. The reason is that the conditions for the merger were not fulfilled at the end of the acceptance period on March 27.
- "We are stating the fact that our offer has not been accepted to such an extent that the conditions for the implementation of the offer are fulfilled", comments Castellum's CEO, Lars-Erik Jansson. "Considering that the merger would have contributed to a consolidation of the Swedish real estate business, I still believe that this transaction would have been in the long term interest of the shareholders in both companies, but of course, we respect those who have made a different judgement. At the same time, I can verify that Castellum is a solid company with a great potential for growth also without any merger."
Castellum will continue its operations according to the strategy decided earlier, which means a focus on cash flow and earnings growth through concentration to growing regions. A continuous improvement of the income from property management can be expected through the great demand with increase in leasing and rising rent levels.
The group has a strong position on its local markets, a position that will be further strengthened through new acquisitions and development of commercial projects and building permissions, especially in the city regions. An actual valuation of the real estate portfolio shows a net asset value per share of SEK 132.
The Annual General Meeting, which was postponed due to the offer mentioned above, will be held on Wednesday, May 24th 2000. As reported earlier, the board will propose a dividend of SEK 4.50 per share at the AGM. In light of Castellum's favourable financial position, the board has also decided to propose to the AGM a program for repurchase/redemption of shares worth SEK 1,000 million. Also after the realization of this program, the company will have a large capacity for profitable and value-adding investments.
For further information, please contact
Lars-Erik Jansson, CEO, tel +46 31 60 74 00/ mobile +46 705-92 06 70
Håkan Hellström, CFO/deputy CEO, tel +46 31 60 74 00 / mobile +46 705-60 74 56