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Selvaag Bolig ASA - Successful Initial Public Offering and allocation of Shares

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Oslo, 11 June 2012: Selvaag Bolig ASA ("Selvaag Bolig" or the "Company", ticker "SBO")

Reference is made to the stock exchange notice dated 22 May 2012 regarding the contemplated Initial Public Offering in Selvaag Bolig (the "Offering") and announcement of transaction details, as well as the stock exchange releases dated 8 June 2012 regarding extensions and offer price.

Selvaag Bolig announces that, pursuant to the Offering as described in the prospectus dated 22 May 2012 (the "Prospectus"), the Board of Directors of the Company (the "Board") has in a Board meeting held on 10 June 2012 resolved to allocate a total of 27,531,030 shares in the Offering (the "Shares"), consisting of 25,031,030 Shares to be issued by the Company in the Offering (the "Offer Shares") and 2,500,000 additional Shares (the "Additional Shares") pursuant to the over-allotment option described in the Prospectus (the "Over-Allotment Option"). The offer price has been set at NOK 20 per Share (the "Offer Price") in the institutional offering and the retail offering, and NOK 16 per Share (20% discount) in the employee offering. Subject to completion, the gross proceeds to the Company from the Offering (prior to any utilisation of the greenshoe option described in the Prospectus (the "Greenshoe Option") will be NOK 500 million, while the total gross proceeds from the Offering (i.e. including the over-allotted Additional Shares) will be NOK 550 million. 

"Given the prevailing market conditions, we are very pleased that we have managed to establish Selvaag Bolig ASA as a listed company. This has strengthened Selvaag Bolig's capital structure and access to the capital market supporting our growth strategy. The listing at Oslo Børs further makes Selvaag Bolig a more attractive investment for existing and new shareholders", says Baard Schumann, CEO of Selvaag Bolig.

Approximately 94% of the Shares were allocated to institutional investors and approximately 6% of the Shares to retail and employee investors. Following the completion of the Offering, Selvaag Bolig will have reached the number of shareholders required to be listed on Oslo Børs.

Selvaag Gruppen AS, the main shareholder in Selvaag Bolig, has been allocated 8,750,000 Shares. Hence, Selvaag Gruppen AS will have an ownership in Selvaag Bolig of approximately 53.8% following completion of the Offering and prior to utilisation of the Greenshoe Option, and approximately 52.4% if the Greenshoe Option is exercised in full. Selvaag Gruppen AS has entered into a lock-up agreement with the Managers of the Offering, for a period of 12 months following the first day of trading of the Shares on Oslo Børs.

Notifications to the investors participating in the Offering of the number of Shares allocated to them, and the corresponding amounts to be paid, are expected to be distributed on 11 June 2012. Investors having access to investor services through their VPS account manager will be able to check the number of Shares allocated to them in the VPS from about 12.00 hours (CET) on 11 June 2012.

The payment date for the Shares allocated in the Offering is 13 June 2012, as further described in the Prospectus. Delivery of Shares is conditional upon full and correct payment, as specified in the Prospectus, and transfer of Shares to investors in the retail and employee offering is subject to registration of the share capital increase in the Norwegian Register of Business Enterprises. In order to facilitate prompt delivery of the Shares in the institutional offering, the Shares in this tranche will be delivered to the investors in the form of existing Shares borrowed by the Managers from Selvaag Gruppen AS, which will be equal in all respects to the new Shares issued in connection with the Offering.

In parallel with the Offering, the Company has carried out a private placement of Shares directed towards Svithun Finans AS in order to settle NOK 40 million of a NOK 50 million seller's credit provided by Svithun Finans AS in connection with the purchase of the remaining shares in Bo En AS (now Selvaag Bolig Rogaland AS). Such part of the seller's credit is settled by issuance of new Shares to Svithun Finans AS at the Offer Price of NOK 20 per Share. Consequently, Svithun Finans AS has been allocated 2,000,000 of the 27,531,030 Shares in the Offering.

Of the 25,031,030 new Shares to be issued in the Offering, 23,031,030 new Shares were resolved issued by the Board pursuant to the Board authorisation granted by the general meeting on 19 April 2012. The 2,000,000 new Shares to be issued to Svithun Finans AS, were resolved issued by the Board pursuant to a Board authorisation granted by the general meeting on 21 November 2011. 

The resolutions imply a total share capital increase of NOK 50,062,060 through the issue of 25,031,030 new Shares, each with a par value of NOK 2.00. The share capital increase will, subject to completion, result in a share capital in the Company of NOK 186,435,652, consisting of 93,217,826 shares each with a par value of NOK 2.00 and each representing one vote in the general meeting of Selvaag Bolig. The share capital increase is expected to be registered in the Norwegian Register of Business Enterprises on or about 13 June 2012.

In accordance with the Greenshoe Option granted by the Company in relation to the Over-Allotment Option, the Board has resolved a share capital increase, based on the Board authorisation granted by the general meeting on 19 April 2012, directed towards the stabilisation manager, ABG Sundal Collier Norge ASA, whereby the stabilisation manager may subscribe up to 2,500,000 new shares at a subscription price that equals the Offer Price of NOK 20 per Share, provided that the Greenshoe Option is exercised by the stabilisation manager. Use of the Greenshoe Option to the fullest extent will imply an additional share capital increase of up to NOK 5,000,000 through the issue of up to 2,500,000 new shares each having a par value of NOK 2.00, equivalent to up to 10% of the Offering. Any use of the Greenshoe Option will be promptly announced through the Oslo Børs' information system. A separate stock exchange notice will be issued by the stabilisation manager, ABG Sundal Collier Norge ASA, regarding the over-allotment and stabilisation activities before the first day of trading.
                                                   
The Company has received applications for Shares that exceed the minimum requirement for listing and, following the completion of the Offering, the Company will have more than 500 shareholders. The conditions for listing on Oslo Børs will consequently be fulfilled. The first day of trading of Selvaag Bolig's shares on Oslo Børs is expected to be 14 June 2012.

For further information about the Offering, please refer to the Prospectus dated 22 May 2012.

ABG Sundal Collier, DNB Markets and Pareto Securities are acting as Joint Lead Managers for the Offering. ABG Sundal Collier and DNB Markets are acting as Joint Bookrunners for the Offering. ABG Sundal Collier, DNB Markets and Pareto Securities have jointly recommended the allocation of Shares in the Offering.

For further information, please contact:
Baard Schumann, CEO Selvaag Bolig
Phone: +47 940 80 000, e-mail: bas@selvaagbolig.no

or

Haavard Rønning, CFO Selvaag Bolig
Phone: +47 400 20 019, e-mail: hroe@selvaagbolig.no

About Selvaag Bolig:
Selvaag Bolig ASA is a residential developer that provides different housing concepts to suit aspirations of different households in and around main cities in Norway and over time in selected cities in Scandinavia. The Company's prime focus is the Greater Oslo area, Stavanger, Bergen and Stockholm; areas with large and growing populations. The Company acquires and develops new residential land plots, and controls the entire value chain from acquisition of the land plots to the sale and delivery of the residential units. The Company targets a delivery of 1,500 residential units per year, and has a land portfolio on which it can develop approximately 9,000 residential units. Selvaag Bolig targets broad customer groups through the residential living concepts Selvaag Start, Selvaag Hjem and Selvaag Pluss. The Company is headquartered at Løren in Oslo.

Important Notice
The contents of this announcement have been prepared by, and are the sole responsibility of, the Company. The Company's financial advisors are acting exclusively for the Company and no one else, and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients, or for advice in relation to the Offering, the contents of this announcement or any of the matters referred to herein. The Offering and the distribution of this announcement and other information in connection with the Offering may be restricted by law in certain jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about, and to observe, any such restrictions. This announcement may not be used for, or in connection with, and does not constitute, any offer of securities for sale in the United States or in any other jurisdiction.
The Offering will not be made in any jurisdiction or in any circumstances in which such offer or solicitation would be unlawful. This announcement is not for distribution, directly or indirectly in or into any jurisdiction in which it is unlawful to make any such offer or solicitation to such person or where prior registration or approval is required for that purpose. No steps have been taken or will be taken relating to the Offering in any jurisdiction outside of Norway
in which such steps would be required. Neither the publication and/or delivery of this announcement shall under any circumstances imply that there has been no change in the affairs of the Company or that the information contained herein is correct as of any date subsequent to the earlier of the date hereof and any earlier specified date with respect to such information.
This announcement is not for publication or distribution, directly or indirectly, in the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The Offer Shares to be issued in the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to, or for the account of, U.S. persons (as such term is defined in Regulation S under the US Securities Act), except pursuant to an effective registration statement under, or an exemption from the registration requirements of, the US Securities Act. All offers and sales outside the United States will be made in reliance on Regulation S under the US Securities Act. There will be no public offer of securities in the United States.
This announcement does not constitute an offering circular or prospectus in connection with an offering of securities of the Company. Investors must neither accept any offer for, nor acquire, any securities to which this document refers, unless they do so on the basis of the information contained in the prospectus made available by the Company only to qualified persons in certain jurisdictions where an offer may be made (if an offer is made). This announcement does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for, any securities and cannot be relied on for any investment contract or decision.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.