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| Norwegian Property becomes owner in Oslo Properties Norwegian Property ASA refers to the stock exchange notice issued by Oslo Properties AS and announces that Norwegian Property will become a shareholder in Oslo Properties. Oslo Properties intention is to acquire Norgani Hotels ASA. Norgani Hotels share holders are offered NOK 91 per share in the voluntary offer from Oslo Properties. The offer values the equity in Norgani Hotels to NOK 3.6 billion. Norwegian Property invests NOK 350 million in Oslo Properties which corresponds to a ownership share of 18 per cent. In connection with the offer Oslo Properties and Scandic Hotels AB has agreed on new and long-term lease contracts between Scandic Hotels and Norgani Hotels. The rent levels have been adjusted upwards to reflect current market levels. The new lease contracts include all hotels leased by Scandic Hotels and are valid from 1.1.2008. The average duration for these lease contracts is extended from 6 to 13 years. The revised lease contracts are subject to completion of the transaction. Scandic Hotels today represents about 60 per cent of Norgani Hotels rental income. Norwegian Property and the other shareholders in Oslo Properties have thus revealed substantial additional values in Norgani Hotels. Norwegian Property will have a majority in the board of directors of Oslo Properties. Norwegian Property guarantees for all debt related to Oslo Properties offer for Norgani Hotels. write your comments about the article :: © 2007 Construction News :: home page |