Lindex agrees to Finnish offer

The board of Swedish clothing chain Lindex has agreed for the company to be bought up by Finnish department store owner Stockmann at a price of 116 kronor per share.

In a statement on Monday morning, the Lindex board said the bid was “reasonable from a financial perspective.”

The company has previously rejected a bid of 102 kronor per share from Swedish rival Kapp-Ahl.

The bid was received by Lindex’s board yesterday. The board said that Stockmann could “contribute to the further development and growth of Lindex in line with the strategy decided by the board.”

Lindex said that a recapitalisation process approved by the board last week would be continued in consultation with Stockmann. The process would result in 3 billion kronor being distributed to shareholders. Lindex said that if the bid from Stockmann was accepted it would call off the recapitalisation.

Kapp-Ahl said on Monday that it was abandoning its bid for Lindex. The offer had received “very limited acceptance” from Lindex shareholders by the time the offer period ended on September 27th, the company said.