Borgestad ASA - Signing of share purchase agreement for sale-leaseback transaction for production facilities in Sweden

Lysaker, 7 October 2026: 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 by the Company's indirect subsidiary Höganäs Bjuf Fastighets AB ("HBF") and Bjuv municipality 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"). Reference is also made to the Company's subsequent stock exchange announcements regarding the approval of the Transaction by Bjuv municipality, most recently the announcement on 1 September 2026 regarding the decision from the Supreme Administrative Court to not grant leave to appeal.

Under the conditional agreement, HBF and Bjuv municipality undertook to enter into the final transaction agreements as soon as possible following Bjuv municipality's approval of the Transaction had become final and binding, and the Transaction was conditional upon such binding approval. As this condition has been satisfied, HBF has today entered into a share purchase agreement with Bjuv municipality (the "SPA"), under which HBF will sell all of the shares in Goldcup 40423 AB, reg. no. 559600-4548, a newly incorporated, wholly owned subsidiary of HBF (the "Property Company"), to Bjuv municipality. In line with the structure described in the stock exchange announcement published on 27 October 2023, HBF will transfer the two properties to the Property Company prior to completion of the Transaction, so that Bjuv municipality acquires the properties indirectly through its acquisition of the shares in the Property Company. The Group will lease the production facilities back to continue its production of refractory products in line with previous practice.

The two properties are in the Transaction valued at SEK 145 million, and the purchase price will be approximately SEK 139 million after adjustment for stamp duty. The purchase price shall be settled in cash in three instalments; 60% will be payable upon completion of the Transaction, 20% will be payable 12 months after completion and the remaining 20% will be payable 24 months after completion.

The Transaction will trigger a stamp duty of approximately SEK 6 million payable by HBF, resulting in a net cash effect for the Group of approximately SEK 139 million. The accounting gain associated with the sale, which will be recorded upon completion of the Transaction, is estimated to be approximately SEK 102 million.

Höganäs Borgestad has agreed with Nordea that SEK 10 million of the net proceeds from the Transaction will be used to reduce the Group's outstanding interest-bearing debt.

The production facilities to be leased back comprise 52,484 square meters in the first year, decreasing to 35,234 square meters two years after completion. No rent will be payable for the first 24 months after completion of the Transaction. Thereafter, an annual rent of SEK 200 per square meter will be payable. The rental period will be maximum five years, with a unilateral right for HBF to terminate the lease at any time with six months' notice.

The Group has been granted an option from Bjuv municipality to purchase another property of 30,000 square meters located in the municipality for a price of SEK 150 per square meter.

Completion of the Transaction is subject to certain customary closing conditions and is expected to take place during October 2026.

For further information, please contact: Pål Feen Larsen, CEO of Borgestad ASA Tel.: +47 48 84 53 33

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 of the Norwegian Securities Trading Act.

This stock exchange announcement was published by Pål Feen Larsen, CEO of Borgestad ASA, on 7 October 2026 at 13:43 CEST on behalf of the Company.

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About Borgestad| www.borgestad.no Borgestad ASA (OSE:BOR) is an investment company focused on real estate and industry. The key investments include 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.

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