Norwegian private investment firm Kistefos, currently a 25% stakeholder in Norwegian broadband provider NextGenTel, is launching a voluntary cash offer for all issued and outstanding shares in the operator. Via its wholly owned subsidiary Telecom Holding 3, Kistefos is offering NOK14.00 (USD1.62) per share, valuing the total share capital of NextGenTel at NOK325.96 million. The offer price represents a premium of 18.1% over the closing price of the shares on 14 February 2019 and 25.4% over the volume weighted three-month average price.
The board of directors of NextGenTel has unanimously recommended the offer, the operator confirmed on its website. Shareholders representing approximately 19% of the total share capital of NextGenTel, including (among others) Hortulan, Tigerstaden, Middelborg Invest, Datum and Eirik Lunde, have given their pre-acceptances to the offer, subject to customary conditions. The offer period is expected to start in the week beginning 25 February 2019 and is expected to be three weeks from the date of approval of the offer document. Telecom Holding 3 intends to make a compulsory acquisition of the remaining shares in NextGenTel upon acquiring more than 90%. Furthermore, it intends to apply to delist the company from the Oslo bourse.
Gunnar Jacobsen, investment director at Kistefos, said: ‘We have had a long-term belief in NextGenTel, but have come to the conclusion that the company can best be developed in a private setting.’ Kistefos is wholly owned by Christen Sveaas.