STOCKHOLM (Reuters) - Shareholders representing 17.5 percent of Swedish credit management firm Intrum Justitia (IJ.ST) will vote against its proposed acquisition of Norway’s Lindorff, Swedish business daily Dagens Industri reported on Sunday.
Intrum Justitia announced on Nov. 14 it had agreed to buy privately held Norwegian competitor Lindorff with newly issued Intrum shares in a deal it expected to deliver large cost savings and stronger growth prospects.
However, SEB Fonder, AMF and Lannebo, which together represent 17.5 percent of the voting rights in Intrum Justitia, said on Sunday they would vote against the acquisition, saying the terms where not good enough.
“We have evaluated this, and we see the industrial logic of the deal, but we think the price of Lindorff is too generous,” Per Trygg, manager at SEB Fonder, told Dagens Industri.
Under the proposed deal, Intrum Justitia and Lindorff shareholders will own roughly 53 percent and 47 percent of shares respectively in the merged company.
Based on Intrum Justitia’s closing price on Nov. 11, the transaction gives Lindorff an equity value of 17.9 billion Swedish crowns ($1.9 billion) and an enterprise value of 40.5 billion crowns.
At least two thirds of shareholders represented at the annual general meeting on Dec. 14 must vote in favor of the deal for it to go through.
Reporting by Johan Ahlander; editing by David Clarke