Court of appeal reverses ruling on Borgestad sale-leaseback deal

Borgestad ASA announced today that the administrative court of appeal in Gothenburg has set aside a previous ruling by the administrative court in Malmö. The original ruling had revoked Bjuv municipality's approval of a sale-leaseback transaction. The court of appeal found that the purchase price for the two Swedish properties, housing the group's production plant and facilities for refractory products, was sufficiently substantiated by the municipality.

This ruling clears a significant hurdle for the transaction, originally announced on October 27, 2023. Bjuv municipality's approval will become binding once any potential appeal by the claimants is finally resolved in their disfavour. The completion of the sale-leaseback deal is contingent upon this binding approval. Claimants have three weeks to appeal the court of appeal's decision.

Borgestad ASA is an investment company with key holdings in real estate and the refractory manufacturer Höganäs Borgestad. This transaction is crucial for the group, which operates Höganäs Borgestad, a leading supplier in the Nordic refractory market with a global presence.