JLL advisor to Tre Kronor Board of Directors

In conjunction with the bid from Svenska Handelsfastigheter, Tre Kronor’s Board of Directors chose to engage JLL Transaction Services AB as advisor. The assignment encompassed strategic support for the Board of Directors in evaluating the bid and assessing whether there was broader interest in Tre Kronor. Despite a tight schedule and the restriction to exclusively public information, there proved to be interest from several players. Relatively quickly, a higher bid was received from the market-leading grocery property company Trophi, followed by a counter-bid from Svenska Handelsfastigheter, at a total of approximately 10 per cent higher than the original offer (after adjustment for dividend). By selecting JLL as strategic advisor, Tre Kronor has maximised its shareholder value. In JLL’s opinion, Boards of Directors should more often assess their companies’ strategic position both before and in conjunction with the bidding process to ensure the best development for shareholders and to strengthen the position prior to potential bids.

“We foresee a need for strategic advice for companies during bidding processes and in conjunction with other structural transactions. During the process with Tre Kronor, JLL’s broad competence in properties and capital markets helped the Board of Directors to make the right decisions and ultimately delivered a solution that generated a higher value,” says Linus Ericsson, CEO of JLL.

“Our assignment is to ensure satisfied shareholders and to drive the company forward. When Svenska Handelsfastigheter placed a bid for the company, we needed a strategic advisor and engaged JLL. We are very pleased with the job they have done and feel assured that we have acted in the shareholders’ best interests,” says Bernt-Olof Gustavsson, Chairman of Tre Kronor.