Hoeganaes Jumps on H Intressenter’s $1.79 Billion Offer

Hoeganaes AB rose to a record after holding company H Intressenter made an offer for the Swedish maker of iron and metal powders, valuing it at about 11.5 billion kronor ($1.79 billion).

Hoeganaes jumped as much as 17 percent to 320 kronor, the highest intraday price since April 1994, and was trading at 319.5 kronor as of 9:40 a.m. in Stockholm, giving the company a market value of 11.2 billion kronor.

H Intressenter, jointly owned by closely held Lindengruppen AB and Foundation Asset Management Sweden AB, is offering 320 kronor a share in cash, according to a statement today. The price is 17 percent higher than the Class B-stock closing price on Feb. 8. H Intressenter currently controls 34.4 percent of the stock and 47.9 percent of votes in the Hoeganaes, Sweden-based company.

“Lindengruppen’s ambition is to develop the businesses we own in a private context,” Chairwoman Jenny Linden Urnes said in the statement. Foundation Asset Management “shares our view on long-term ownership.”

The bidder said it has great confidence in Hoeganaes’s current management team and existing strategies, and that the offer was announced before the board of Hoeganaes has had the opportunity to evaluate it. Three members of the Hoeganaes board are also members of the Lindengruppen board.

Lindengruppen has been the largest shareholder in Hoeganaes both before and since the manufacturer’s listing in 1994 and prior to the offer held 21.8 percent of shares and 37.8 percent of votes. H Intressenter has also acquired Industrivarden AB’s 12.6 percent share stake at 320 kronor a share.

Foundation Asset Management will contribute with “significant experience from owning and developing industrial companies and a strong global network,” according to the statement. The fund, with headquarters in Stockholm, is owned by the three largest Wallenberg-family foundations.

To contact the reporter on this story: Janina Pfalzer in Stockholm at jpfalzer@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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