Genova Property Group AB (publ) (OM:GPG) agreed to acquire 50% stake in Järngrinden AB from its shareholders for approximately SEK 560 million on September 28, 2021. The consideration will be paid of which SEK 275 million will be paid through a capital injection in the form of a new share issue in Järngrinden and 287.5 MSEK in the form of a direct acquisition from the current principal shareholders of Järngrinden, including two options to acquire an additional 50 percent of the shares within five to seven years respectively. Järngrinden will use the capital injection to increase the pace of property development as well as acquisition of new investment properties. The property value in Järngrinden amounts to around SEK 500 million. Through the acquisition, Genova intends to carry out the Acquisition through a combination of available funds and a directed share issue of around 2.25 million ordinary shares. Genova hereby announces its intention to, with deviation from the shareholder's preferential rights, carry out a new share issue directed to Swedish and international institutional investors through an accelerated book-building procedure, which is to commence immediately, and have for this reason engaged Carnegie Investment Bank AB (publ) ("Carnegie") and Swedbank AB (publ) ("Swedbank") to investigate the possibility to carry out the directed new share issue. Estimated investment volume in the property development portfolio is around SEK 3.9 billion with an estimated value of around SEK 4.7 billion when completed. The value of Järngrinden's shares in the wholly and partly owned real estate portfolio is around SEK 500 million of which the biggest portion consists of commercial properties in Borås with accompanying land. The rental value on a yearly basis amounted to SEK 31 million and the operating surplus amounted to SEK 22 million. The seller's advisor in the transaction has been Catella Corporate Finance.

Genova Property Group AB (publ) (OM:GPG) completed the acquisition of Järngrinden AB from its shareholders on March 11, 2022.