Public Property Invest (PUBLI) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition triples portfolio size to NOK 53bn and 841 properties, making it the largest listed social infrastructure company in Europe.

• Increases exposure to elderly care and healthcare segments, aligning with demographic trends and stable, government-backed rental income.

• Diversifies assets across Norway, Sweden, Denmark, and Finland, with Sweden representing 53% of gross asset value.

• 84% of rental income from long-duration, government-backed tenants, supporting earnings stability and dividend capacity.

• Strengthens strategic positioning and capital markets profile, supporting long-term growth.

Financial terms and conditions

• Acquisition price set at NOK 34bn for 737–841 properties, representing an 8% discount to book value of NOK 37bn.

• Financed by NOK 13.8bn in new equity (Aker: NOK 5.4bn, SBB: NOK 6.2bn, others: NOK 2.2bn), NOK 13.5bn bridge loan, and NOK 6.9bn from balance sheet cash.

• SBB receives 446.9m new shares as part of consideration; APG Invest commits NOK 1.3bn in private placement.

• Two-year investment grade bridge financing secured from JPMorgan and DNB.

• Balance sheet remains solid with LTV below 50% and net debt to EBITDA at 9x.

Synergies and expected cost savings

• Immediate 14% increase in normalized net income from property management per share.

• Financial synergies expected from improved financing terms and economies of scale.

• Retains attractive dividend policy and focus on growth and market consolidation.