Reference is made to the stock exchange announcement by Borgestad ASA (the “Company” and, together with its consolidated subsidiaries, the “Group”) published on 11 December 2023 regarding the approval from Bjuv municipality in Sweden of the sale and leaseback agreement for the two properties in Sweden where the Group’s production plant and other production facilities for refractory products are located (the “Transaction”).
The Company has been informed that a complaint regarding the approval from Bjuv municipality has been received prior to the expiration of the appeal period. The complaint relates to the purchase price in the Transaction and that this in the claimant’s opinion significantly exceeds the market value of the two properties. The complaint will be handled by the Administrative Court in Malmö (the “Administrative Court”).
The approval of the Transaction by Bjuv municipality will only become binding once the complaint has been finally resolved in the claimant’s disfavour, and the completion of the Transaction is conditional upon such binding approval.
In the Company’s view, the probability of the complaint being successful is low. However, it is currently unknown when the Administrative Court will process the complaint, and it cannot be ruled out that a decision will not be reached until after the end of the first quarter of 2024, potentially resulting in a later completion of the Transaction than previously communicated (even if the complaint is decided in the claimant’s disfavour). If the Administrative Court rules in favour of the claimant, there is also a risk that the Transaction cannot be completed.
For further information, please contact: Pål Feen Larsen, CEO of Borgestad ASA Tel.: +47 48 84 53 33
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.