APF, a long term holder in cosmetics company Oriflame, has agreed to sell its 9.9% stake in the company for SEK227 per share in cash, releasing close to SEK1.3bn.
The announcement came after Oriflame's bid committee recommended shareholders accept the offer, arguing that despite the long term potential of the business, there were shorter and medium term challenges that meant retaining shares would constitute exposure to greater risk.
Per Colleen, head of Fundamental Equities at AP4, said: "With its geographical exposure, Oriflame is a fairly unique company on the Stockholm Stock Exchange. This has meant that the company has had periods of both very strong growth has well as periods of significant challenges. As a long-term investor, AP4 has accepted the volatility based on our confidence in the business model of the company as well as the company's ability to adjust to changing conditions. At the same time, we observe that the stock market in general has had difficulties to apply a long-term perspective on Oriflame."
AP4 sees challenges particularly in markets such as China, Indonesia and Vietnam.
At the cash offer price of SEK227 per share, the 5.6 million shares held by the fund would be valued at SEK1.27bn (€119m).