Sponda surges on Blackstone offer

US private equity firm Blackstone has made a €1.76bn bid for Finnish property group Sponda.

The cash offer of €5.19 per share, which represents a premium of 20.7% to Sponda's closing price on Friday, has been recommended by the company's board and its largest shareholder, which represents around 46.9% of the shares.

Sponda's president and chief executive officer, Kari Inkinen, said: "With the support of Blackstone we will further develop our business, our properties and our portfolio. We will continue to offer high-quality business premises and working environments to our customers."

Chairman Kaj-Gustaf Bergh said the board of directors has carefully evaluated the tender offer and has unanimously decided to recommend the shareholders accept it.

"The tender offer is an acknowledgement of Sponda being the prime real estate investment company in Finland with a clear focus on high-quality commercial properties in growth areas and the Helsinki Central Business District in particular. The board of directors of Sponda believes that the tender offer is in the best interest of all shareholders and that the offer price being equal to Sponda's net asset value per share offers a favourable opportunity to Sponda's shareholders."

Blackstone, meanwhile, said the deal represents a "unique opportunity" to increase its investment in the Nordic region and Finland, in line with its strategy to acquire and grow high-quality platforms globally.

"Given its track record, Blackstone looks forward to partnering with and supporting Sponda's management team in realising value across Sponda's portfolio, including in its ongoing development and land assets. Blackstone can confirm that it intends to maintain Sponda as a going concern and would look to make further acquisitions over time in Finland managed by Sponda, where feasible," it said.

At 1244 BST, Sponda shares were up 22% to €5.19.