Borgestad, 27. October 2023: Höganäs Bjuf Fastighets AB ("HBF"), an indirect
subsidiary of Borgestad ASA (the "Company" and, together with its consolidated
subsidiaries, the "Group") has today entered into a conditional agreement with
Bjuv municipality in Sweden for a sale and leaseback transaction for two
properties in Sweden where the Group's production plant and other production
facilities for refractory products are located (the "Transaction").
The Group will sell the two properties, including the production facilities, to
Bjuv municipality and then lease the production facilities back to continue its
production of refractory products in line with previous practice. Prior to
completion of the Transaction, the two properties will be transferred to a new
wholly owned subsidiary of HBF, and the Transaction will be structured as a sale
by HBF of the shares in such subsidiary.
The two properties are in the Transaction valued at SEK 145 million, and the
purchase price will be approximately SEK 132 million after adjustment for tax
values. The purchase price shall be settled in cash in three installments