June 20, 2017 / 5:10 AM / a month ago

BRIEF-Hafslund's board says minority shareholders should reject offer

2 Min Read

June 20 (Reuters) - Hafslund Asa's board said in a statement:

* The board of directors recommends not to accept the announced offer from the city of Oslo

* Estimated value in independent valuation from sparebank 1 markets is significantly higher than offer price of nok 96.75 per share

* Sparebank 1 markets has concluded that company's underlying value per share is nok 139 based on today's expected transaction values, and nok 168 based on discounted expected future cash flows

* As the City of Oslo and Fortum jointly own more than 90% of the voting shares in Hafslund, following completion of the offer, the offeror would be able to proceed to a compulsory acquisition of the other shareholders, regardless of the level of acceptance of the offer among the other shareholders. As a result, minority shareholders have no realistic possibility of remaining shareholders in company

* Shareholders will have choice between accepting offer price or get compensation for shares determined by judicial valuation

* Board of directors' opinion is that possibility of obtaining a higher price per share through a judicial valuation clearly outweighs for risk attached to outcome of a legal process

* It will be in shareholders' financial interest not to accept offer, but instead let price be determined by a judicial valuation Source text for Eikon: Further company coverage:

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