Reuters – Wallenberg Fund Joins Bid for Hoganas

A foundation managing assets belonging to the Wallenberg business family and a minority owner bid for leading metals powder firm Hoganas on Monday in a deal valued at 11.2 billion crowns ($1.74 billion) that will see the firm go private, Reuters reported. Foundation Asset Management, which manages assets owned by three Wallenberg foundations, is joining Hoganas’s current minority owner, Lindengruppen, to pay 320 crowns per share in cash for the world’s biggest producer of iron and metals powders.

(Reuters) – A foundation managing assets belonging to the Wallenberg business family and a minority owner bid for leading metals powder firm Hoganas on Monday in a deal valued at 11.2 billion crowns ($1.74 billion) that will see the firm go private.

Foundation Asset Management, which manages assets owned by three Wallenberg foundations, is joining Hoganas’s current minority owner, Lindengruppen, to pay 320 crowns per share in cash for the world’s biggest producer of iron and metals powders.

“Lindengruppen’s ambition is to develop the businesses we own in a private context,” said Lindengruppen chairman Jenny Linden Urnes.

Hoganas’ board said they would make a recommendation on the offer no later than two weeks before the expiry of the acceptance period on April 12

The offer represented a premium of 30.5 percent to the volume-weighted average price of Hoganas shares over the last three months and a 16.8 percent premium to Hoganas’ closing price on Friday last week.

Hoganas rose nearly 17 percent to the offer price.

The bidding group said it had bought investment firm Industrivarden out of Hoganas and controlled 34.4 percent of the company’s stock and 47.9 percent of votes. Lindengruppen had 21.8 percent of Hoganas before the bid.

Hoganas is a big supplier to the auto industry and had sales of 5.2 billion crowns in the nine months to the end of September 2012.

Lindengruppen and FAM said the offer would be financed by Lindengruppen equity and bank debt. ($1 = 6.4209 Swedish crowns) (Reporting by Veronica Ek and Simon Johnson, Editing by Patrick Lannin)

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