September 27, 2021

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EQT companies sell their shares for NOK 25 billion

EQT companies sell their shares for NOK 25 billion

It emerged from a somewhat ambiguous press release from the EQT late Tuesday. EQT appears to be reviewing the so-called stock closing, that is, the rules for when owners can sell their shares, after listing in 2019.

This was possible after the company abruptly changed the lock-in rules that were put in place in connection with the listing two years ago, when it was promised that partners in the company, who as of Tuesday owned about 75 percent of the company, would sit down. on the stock for three years. Now they still allow partners to collect and part of these shares.

according to Swedish business newspaper Dagens Industri (DI) This means that about 60 EQT partners sold as much as 63 million shares during Tuesday night. Based on Tuesday’s closing price of just over NOK 400, sales were around SEK 25 billion.

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The subscription price was NOK 67 at the time of listing, so partners who are now selling get a whopping 500 per cent gain.

The item sold corresponds to about six percent of the equity in EQT. Morgan Stanley, SEB, BNP Paribas, Carnegie and JPMorgan have been authorized to sell shares to Swedish and international institutional investors.

DI writes that the Swedish Wallenberg family, through their newly formed Wallenberg Investments, which manages funds for several Wallenberg institutions, will buy about one percent of the equity capital in EQT. For many decades, there was hardly a big business deal or big company in Sweden in which the Wallenberg family was not involved in one way or another.

Has the peak been reached?

The EQT has been a bullet on the Stockholm Stock Exchange for the past two years. Since the company was listed on the stock exchange in 2019, the stake has increased by more than 350 percent.

This was benefited by Norwegian EQT leaders Christian Sending – CEO of EQT – and Norwegian President Anders Messund. But things have changed in the last month. Since the peak, on August 4 this year, the share has fallen more than ten percent.

Anders Messund, Head of EQT in Norway.

Anders Messund, Head of EQT in Norway. (Photo: Elaine Holland)

On Monday, major Nordea Bank also lowered its EQT target price from ‘hold’ to ‘sell’.

From the new year to the end of July were Sindings and Misunds The company’s stock doubled to 13.5 and 6.7 billion SEK, respectively, which had a market capitalization of over SEK 20 billion. But in recent weeks, the value has fallen by a few hundred million crowns.

Among those selling are some that have been involved since the company was founded in 1994, while others came right before the listing. Some of the partners who sell are also out of the company now.

Want more angel

EQT Chief Financial Officer Kim Henriksson said in an interview with DI Tuesday night that selling six percent of the share capital is less than half of what was originally set out in the rules on the list. He also says that the holding period for the remaining shares held by the partners, which cannot be sold until the period from 2023 to 2028, has been extended. The limit is pre-set at 2024. All sales of major shares until 2026 must also be coordinated by the EQT.

What we are trying to achieve is to have a diverse and broad ownership base over time. We also try to take care of our clients’ wishes so that half of the net liquidity the partners receive commit to reinvesting in our EQT funds, Henriksson says.

The market capitalization of EQT at the close of trading on Tuesday was SEK 398 billion, just over NOK 400 billion. That’s the same as what AB Volvo is worth, that is, what’s left of Volvo’s Swedish truck division.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.