Swedish Grocer ICA to Go Private at $12.5 Billion Valuation

Charles Daly
·1 min read

(Bloomberg) -- ICA Gruppen’s owner, along with pension firm AMF, has made an offer to acquire all the shares in the Swedish grocer it doesn’t already own, valuing the company at about 107.4 billion kronor ($12.5 billion), as it seeks a faster expansion amid increased competition.

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The offer of 534 kronor per share represents a 29% premium compared to ICA’s closing price on Oct. 22, which was the last trading day prior to market speculation about a potential deal, according to a statement Wednesday. ICA shares closed at 480.70 kronor on Tuesday, equating to a premium of about 11%.

At $12.5 billion value, the take-private of ICA is one of the largest deals in the European consumer sector this year and follows the acquisition of British grocery chain Wm Morrison Supermarkets Plc by buyout firm Clayton Dubilier & Rice, according to data compiled by Bloomberg.

“Now we need to focus on growth oriented long-term investments, which are best suited outside the stock market, and we are happy to have AMF on board for the journey,” said Magnus Moberg, chairman of ICA-handlarnas Forbund.

The members association of ICA retailers -- ICA-handlarnas Forbund -- is the largest shareholder in the grocer with a stake of 54%. AMF will hold 13% of the total number of shares and votes after the deal.

The bidders engaged Handelsbanken Capital Markets and SEB Corporate Finance as their financial advisers and the offer is not subject to any financing condition, the statement said.

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