Orkla Seeks Majority In Jotun, Offers To Buy A Shares

   DOW JONES NEWSWIRES 
 

Norwegian conglomerate Orkla (ORK.OS) Wednesday said that its wholly-owned subsidiary Lilleborg AS has made an offer to shareholders in Jotun AS, a Norwegian producer of paints, to buy A shares at a price of NOK70,000 a share in cash.

The company said it has been an active minority shareholder in Jotun for nearly 40 years and now wishes to take part in the further development of Jotun as a majority shareholder.

Orkla already owns 41,981 A shares and 103,446 B shares in Jotun, which is equivalent to 42.5% of share capital and 38.2% of the voting rights. An A share in Jotun entitles the holder to 10 times as many votes as a B share.

The offer is conditional on Orkla acquiring a total stake representing more than 50% of the voting rights in the company.

If all the A shareholders accept the offer, Orkla's stake in Jotun will represent 63.6% of the share capital and 90.9% of the voting rights. In such case, the total purchase price will be NOK5 billion.

The acceptance period expires on Sep. 30. Orkla reserves the right to extend this deadline.

Shares Tuesday closed at NOK44.30.

-By Katarina Gustafsson, Dow Jones Newswires [phone]; [e-mail]