Lego Billionaire Gives Matas Shares Biggest Jump Since IPO

Matas A/S, the Danish drugstore chain that went public in June, surged the most since its first day of trading after the billionaire founding family of Danish toymaker Lego A/S bought an 11 percent stake.

Kirkbi Invest A/S, fully owned by the Kristiansen family’s holding and investment company Kirkbi A/S, bought 4.49 million shares for 130 kroner a piece, the retailer said in a statement late yesterday. The stake was sold by Materialisternes Invest Holding ApS and Svenska M Holding 1 AB, a unit of CVC Capital Partners Ltd.

Matas, which sells drugs and beauty products in Denmark and Sweden as well as online, gained as much as 3.8 percent. That’s the biggest increase since its June 28 trading start after an initial public offering. The shares of the Alleroed, Denmark-based company advanced 3 percent to 136 kroner at 12:13 p.m. in the Danish capital. The stock was priced at 115 kroner in the IPO.

“We consider the investment in Matas to be a good supplement to our financial investment portfolio,” Soeren Thorup Soerensen, Chief Executive Officer of Kirkbi A/S, said in a statement. “We are pleased that we have had this opportunity to invest in Matas, which is a well-run company with a stable cash flow.”

Kirkbi is controlled by Denmark’s richest man, Kjeld Kirk Kristiansen, the grandson of Lego founder Ole Kirk Kristiansen. He has a net worth of $6.6 billion, making him the world’s 189th richest person, according to data compiled by Bloomberg.

The new owner is “a welcome addition” to Matas because it reduces the ownership of the two sellers which aren’t long-term investors, Nordea Private Banking, a unit of Stockholm-based Nordea Bank AB, said in a note to clients today

“We see good long-term value in Matas with stable earnings and high dividend payments,” the bank said in a note out of Copenhagen.

Morgan Stanley and Nordea Markets advised the sellers on the divestment.

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