Lysaker, 7 October 2026: Reference is made to the stock exchange announcement by
Borgestad ASA (the "Company" and, together with its consolidated subsidiaries,
the "Group") published on 27 October 2023 regarding the conditional agreement
entered into by the Company's indirect subsidiary Höganäs Bjuf Fastighets AB
("HBF") and Bjuv municipality for the sale and leaseback of two properties in
Sweden, where the Group's production plant and other production facilities for
refractory products are located (the "Transaction"). Reference is also made to
the Company's subsequent stock exchange announcements regarding the approval of
the Transaction by Bjuv municipality, most recently the announcement on 1
September 2026 regarding the decision from the Supreme Administrative Court to
not grant leave to appeal.
Under the conditional agreement, HBF and Bjuv municipality undertook to enter
into the final transaction agreements as soon as possible following Bjuv
municipality's approval of the Transaction had become final and binding, and the
Transaction was conditional upon such binding approval. As this condition has
been satisfied, HBF has today entered into a share purchase agreement with Bjuv
municipality (the "SPA"), under which HBF will sell all of the shares in Goldcup
40423 AB, reg. no. 559600-4548, a newly incorporated, wholly owned subsidiary of
HBF (the "Property Company"), to Bjuv municipality. In line with the structure
described in the stock exchange announcement published on 27 October 2023, HBF
will transfer the two properties to the Property Company prior to completion of
the Transaction, so that Bjuv municipality acquires the properties indirectly
through its acquisition of the shares in the Property Company. The Group will
lease the production facilities back to continue its production of refractory
products in line with previous practice.
The two properties are in the Transaction valued at SEK 145 million, and the
purchase price will be approximately SEK 139 million after adjustment for stamp
duty. The purchase price shall be settled in cash in three instalments; 60% will
be payable upon completion of the Transaction, 20% will be payable 12 months
after completion and the remaining 20% will be payable 24 months after
completion.
The Transaction will trigger a stamp duty of approximately SEK 6 million payable
by HBF, resulting in a net cash effect for the Group of approximately SEK 139
million. The accounting gain associated with the sale, which will be recorded
upon completion of the Transaction, is estimated to be approximately SEK 102
million.
Höganäs Borgestad has agreed with Nordea that SEK 10 million of the net proceeds
from the Transaction will be used to reduce the Group's outstanding
interest-bearing debt.
The production facilities to be leased back comprise 52,484 square meters in the
first year, decreasing to 35,234 square meters two years after completion. No
rent will be payable for the first 24 months after completion of the
Transaction. Thereafter, an annual rent of SEK 200 per square meter will be
payable. The rental period will be maximum five years, with a unilateral right
for HBF to terminate the lease at any time with six months' notice.
The Group has been granted an option from Bjuv municipality to purchase another
property of 30,000 square meters located in the municipality for a price of SEK
150 per square meter.
Completion of the Transaction is subject to certain customary closing conditions
and is expected to take place during October 2026.
For further information, please contact:
Pål Feen Larsen, CEO of Borgestad ASA
Tel.: +47 48 84 53 33
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.
This stock exchange announcement was published by Pål Feen Larsen, CEO of
Borgestad ASA, on 7 October 2026 at 13:43 CEST on behalf of the Company.
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About Borgestad| www.borgestad.no
Borgestad ASA (OSE:BOR) is an investment company focused on real estate and
industry. The key investments include Agora Bytom shopping center and the
leading refractory manufacturer Höganäs Borgestad.
About Höganäs Borgestad | www.hoganasborgestad.com
Höganäs Borgestad develops, manufactures and delivers refractory products,
installations and turnkey solutions that enhance the productivity and
competitiveness of industrial customers. The aim is to contribute to the
customers' profitability by providing high-value refractory solutions to their
challenges. Today, the company is a leading supplier in the refractory market of
the Nordic countries and has a global presence in a number of selected
application areas.
in the refractory market of\
the Nordic countries and has a global presence in a number of selected\
application areas.\