The transaction is expected to be completed during September 2020. After the sale of the property development operation, Veidekke will be a focused Scandinavian construction group with a strong market and financial position. After completion of the transaction, the Board of Veidekke will propose payment of an extraordinary dividend of NOK 20 per share.

At the close of first quarter 2020, Veidekke’s net interest-bearing debt amounted to NOK 2.6 billion. Part of the sales proceeds will be used to repay debt, in order to ensure desired adjustments in the financing structure to support the company’s future growth and development. Once the transaction is completed, the Board of Veidekke will convene an extraordinary general meeting in the second half of 2020. The Board will propose to the extraordinary general meeting payment of an extraordinary dividend of NOK 20 per share from the proceeds from the sale of the property development operation. Veidekke has an unequivocal ambition of distributing remaining liquidity from the transaction, as well as the cancelled dividend based on the 2019 financial statements, in the near future, as soon as the uncertainty e.g. related to the Covid-19 pandemic has been resolved.

At the end of 2019, Veidekke Eiendom had 1,557 apartments under construction and a land bank of about 15,500 units in Norway and Sweden. The main part of the landbank is situated in the largest cities in Norway and Sweden, with an emphasis on Eastern Norway and the Mälardalen.

Norwegian Property's CEO Bent Oustad states:

“The investment is in line with Norwegian Property's communicated ambitions and strategy for growth, and the Group's low LTV is a good platform for investments. We consider this a good opportunity for Norwegian Property to further develop the business in collaboration with industrial and financial partners with whom we can share the development risk. We are very pleased with the acquisition of a company with competent employees and a large site bank with many, well-advanced projects in both Norway and Sweden.”