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Deals

Stena Adactum and Altor launch recommended bid for Sweden's Gunnebo

STOCKHOLM (Reuters) - Investment company Stena Adactum and private equity firm Altor launched a recommended cash bid for Gunnebo GUNN.ST on Monday, valuing the security products maker at around 2.4 billion Swedish crowns ($263 million)

The bid for Gunnebo, which makes products within areas such as entrance control, was 25 crowns per share, a 33% premium to Gunnebo’s closing price on Friday.

“We see a big potential in the company,” Altor partner Bengt Maunsbach said in a statement. “But additional financial resources and extensive operational measures are needed to carry through the necessary investments and repositioning to the most attractive product areas.”

Stena Adactum was already the largest owner in Gunnebo with a 26% stake. In addition, the bidders have received undertakings to accept the offer from holders of another 30% of shares, subject to certain conditions.

The bid is conditioned on reaching an acceptance level of more than 90%.

Reporting by Johannes Hellstrom; editing by Niklas Pollard

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