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Third party research

Bergs Timber: Public takeover bid with 86% premium - ABG

Bergs Timber

This is a third party research report and does not necessarily reflect our views or values

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- Largest owner Norvik hf (59%) offers SEK 44.5 per share
- Offer constitutes an 86% premium to closing price of SEK 23.9
- Second largest shareholder owns only 3.4%

Public takeover offer by largest shareholder
Bergs Timber's largest owner, Norvik hf, which owns 59% of the company, announced a public takeover offer to Bergs Timber's shareholders this morning, offering SEK 44.5 per share, an 86% premium to the closing price. The board has recommended the offer, but notes that it lies in the lower end of the range it considers fair. Board member and second largest owner Åke Bergh, who owns 3.4% of the company, made a reservation against the decision and has informed the board that he cannot recommend the offer, since he believes that there is more value potential in the company. The offer is conditioned on Norvik becoming the holder of more than 90% of outstanding shares, and the receipt of all necessary regulatory approvals.

Offer implies '24e-'25e EV/EBIT of 12-7x
On our most recently published estimates the offer corresponds to a valuation of 12-7x '24e-'25e EV/EBIT, and 15-9x '24e-'25e P/E, compared to our peer group which is trading at 12-9x and 13-9x, respectively. Our DCF models including and excluding M&A yielded fair value ranges of SEK 47-63 and SEK 53-84, respectively. Our most recently published fair value range for the company was SEK 25-75.
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