Veidekke

Earnings Release • Sep 1, 2020

Veidekke ASA: Divestment of Veidekke Eiendom completed

Veidekke ASA: Divestment of Veidekke Eiendom completed

Veidekke ASA today completed the sale of its property development operation to

the consortium comprising Fredensborg AS, Fredensborg Bolig AS, Norwegian

Property ASA and Union Real Estate Fund III Holding AS. In line with the

agreement entered into on 16 June 2020, Veidekke has received a consideration of

NOK 7.1 billion on a debt-free basis.

The buyer takes over the operation based on a company value of NOK 8.75 billion,

including working capital, taxes and other debt items. The transaction generates

a book gain for Veidekke of approximately NOK 1.2 billion, which will be

recognised in the income statement in the third quarter. The divestment of

Veidekke's property development operation has now been completed.

"This is an important day. The process of splitting Veidekke, to divest the

property development operation, has been extensive and of strategic importance

for Veidekke. With the sale completed, Veidekke is a streamlined construction

company, with a solid financial position that provides a strong basis for

further development of the business. While it is sad to see good colleagues go,

it is good to know that they have a solid and enthusiastic new owner, with whom

we look forward to working in the years ahead," says Jimmy Bengtsson, CEO of

Veidekke ASA.

ABG Sundal Collier and the law firm Schjødt served as, respectively, Veidekke's

financial and legal advisers in the process. The consortium's advisers were

Arctic Securities, DNB Markets, PWC, and the law firms Thommessen in Norway and

Vinge in Sweden.

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

For more information, contact:

Jørgen Wiese Porsmyr, EVP, ph. +47 907 59 058, jorgen-wiese.porsmyr@veidekke.no

Lars Erik Lund, EVP, ph. +47 413 31 369, lars.lund@veidekke.no

Veidekke press photos  (https://veidekke.fotoware.cloud/fotoweb/archives/5028

-Pressebilder-Veidekke/)

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Veidekke is one of Scandinavia's largest contractors. Undertaking all types of

building and civil engineering contracts, the group also maintains roads, and

produces asphalt and aggregates. The company emphasizes stakeholder involvement

and local experience. The annual turnover is NOK 37 billion, and half of the

8,200 employees own shares in the company. Veidekke is listed on the Oslo Stock

Exchange, and has posted a profit every year since its inception in 1936.