The Norwegian spirits producer is valued at NOK 2.88 billion in the merger agreement. Stein Erik Hagen will be the largest owner in the new company.
The board of the Norwegian spirits producer Arcus has entered into an agreement with Finnish Altia on a merger. It appears in a message Tuesday morning.
The shareholders in Arcus will in the agreement be allotted 0.4618 new shares in Altia, which totals up to around 31.4 million shares.
At the end of the trading day on Monday, Altia had a share price of 8.30 euros on the Helsinki Stock Exchange. This gives a total valuation of Arcus of 260 million euros, equivalent to 2.88 billion kroner, according to E24’s calculations.
Arcus shareholders will be left with 46.5 percent of the shares in the merged company, which will be named Anora Group. The shareholders in Altia will be left with the remaining shares.
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– Creates significant value for shareholders
The companies believe that the merger will allow the new company to pursue “growth and more powerful product launches both in and outside the Nordic region”, and that the overall brand portfolio has “significant export potential”.
– This merger will create significant value for the shareholders in both companies, and the merged company will be even more financially positioned to pursue growth beyond the Nordic core business, says Arcus chairman Michael Holm Johansen, who will have the same role in the new company.
It is planned that the entire company will see cost synergies of 8-10 million euros annually. These savings are expected, among other things, related to logistics and production.
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Stein Erik Hagen-owned Canica is Arcus’ largest shareholder with 44.24 percent of the share capital. Canica also previously owned a small shareholding in Altia.
John Fredriksen-owned Geveran Trading is in turn the second largest shareholder in the Norwegian company with an ownership share of close to ten percent.
The largest shareholders in both Altia and Arcus have already given their prior approval of the agreement.
Hagen’s company will be the largest shareholder in the merged company, with 22.4 per cent of the shares. The Finnish state investment company Vake will be the second largest shareholder with 19.4 per cent of the shares, while Fredriksen will be left with 4.6 per cent of the shares, making him the third largest shareholder.
Altia CEO Pekka Tennilä will be the new CEO of the company, while Arcus’ CFO Sigmund Toth will take on the same role in the new company.
Anora Group will have its primary trading venue on the Helsinki Stock Exchange, but will also be secondary listed on the Oslo Stock Exchange after the merger. The company will be headquartered in the Finnish capital.
It is expected that the merger will be completed during the first half of 2021.