The Norwegian government agency that manages the Government Pension Fund Norway, Folketrygdfondet, has initiated discretionary proceedings against Thon Group over the calculated value of shares in Olav Thon Eiendomsselskap ASA (OLT).

Folketrygdfondet said it had not accepted the consideration of NOK 335 per share in the compulsory redemption of its shares in OLT.

It has therefore opened an assessment case against Thon Group to determine the value of the shares in OLT, pursuant to section 4-25 of the Norwegian Public Limited Companies Act.

The agency stated that it had been in dialogue with Thon Group’s lawyers, who confirmed the company will not request an appraisal itself, while they also did not provide an overview of which shareholders had not accepted the compulsory redemption offer price upon request.

“Folketrygdfondet is positive that other shareholders will also participate in the appraisal case against Thon Group,” the agency said.

“If the court determines that the value of the shares exceeds the offer price of NOK 335 per share, all shareholders who are parties to the appraisal will be entitled to payment of the excess amount, in line with the value determined by the court.”

Shareholders are able to participate in the discretionary matter in three ways, including as an individual shareholder represented by their own lawyer.

They can also participate by notifying the court that the shareholder wants to become a party to the arbitration proceedings without a lawyer.

Finally, shareholders can choose to be represented by Folketrygdfondet's lawyer and must then contribute to covering ongoing legal costs, although the general rule is that Thon Group will cover any necessary costs of the assessment, but the court may decide otherwise in special cases.

“The prerequisite for participating in the discretionary process is that the shareholder has contested the compulsory redemption within the deadline,” Folketrygdfondet stated.

“If you wish to participate in the discretionary case initiated by Folketrygdfondet, we ask that you send your contact information, the number of shares you owned and documentation that you have protested within the deadline.”

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