Borgestad ASA — M&A Activity 2023

Dec 11, 2023

BORGESTAD ASA – INITIAL APPROVAL FROM BJUV MUNCIPALITY OF SALE-LEASEBACK-TRANSACTION FOR PRODUCTION FACILITIES IN SWEDEN

BORGESTAD ASA – INITIAL APPROVAL FROM BJUV MUNCIPALITY OF SALE-LEASEBACK-TRANSACTION FOR PRODUCTION FACILITIES IN SWEDEN

Borgestad, 11 December 2023: Reference is made to the stock exchange announcement by Borgestad ASA (the "Company" and, together with its consolidated subsidiaries, the "Group") published on 27 October 2023 regarding the conditional agreement entered into with Bjuv municipality in Sweden for the sale and leaseback of two properties in Sweden, where the Group's production plant and other production facilities for refractory products are located (the "Transaction").

The municipal council of Bjuv has today approved the Transaction. The approval may be appealed within a three-week period and will only become binding when the appeal period has expired without any appeals having been made, or when any appeals have been finally resolved. The appeal period begins when the minutes from the decision of Bjuv municipality is published. The completion of the Transaction is conditional upon the approval having become binding, and the satisfaction of certain other customary closing conditions, and is expected to take place in the first quarter of 2024.

The initial (non-binding) approval of the Transaction from the municipal council of Bjuv received today is one of the conditions for the completion of the private placement of new shares in the Company announced on 6 November 2023, as well as completion of the subsequent repair offering in the Company. The relevant condition for completion is consequently fulfilled.

For more information, please contact:

Pål Feen Larsen, CEO Borgestad ASA, +47 488 45 333

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Pål Feen Larsen, CEO in Borgestad ASA on 11 December 2023 at 22.00 hrs CET on behalf of the Company.

About Borgestad|www.borgestad.no

Borgestad ASA (OSE:BOR) is an investment company focused on real estate and industry. The key investments include the Agora Bytom shopping center and the leading refractory manufacturer Höganäs Borgestad.

About Höganäs Borgestad | www.hoganasborgestad.com

Höganäs Borgestad develops, manufactures and delivers refractory products, installations and turnkey solutions that enhance the productivity and competitiveness of industrial customers. The aim is to contribute to the customers' profitability by providing high-value refractory solutions to their challenges. Today, the company is a leading supplier in the refractory market of the Nordic countries and has a global presence in a number of selected application areas.