The Swedish real estate company SBB finalizes the sale of 51% of EduCo to repay debt

MADRID, 26 Jun.

The Swedish real estate company SBB finalizes the sale of 51% of EduCo to repay debt


Swedish real estate investment firm Samhällsbyggnadsbolaget i Norden AB (SBB) has entered exclusive talks to sell the 51% stake it still controls in SBB EduCo (EduCo), after recently receiving an expression of interest from Brookfield, which has already acquired 49 % of this subsidiary in November 2022.

In this sense, the real estate company has indicated that the transaction would make it possible to settle the intercompany loan of 14,500 million Swedish crowns (1,241 million euros) from EduCo to SBB.

It is the intention of the parties to enter into a share purchase agreement and related agreements during July 2023, although SBB has stressed that discussions held do not constitute an obligation to complete a transaction and are subject to customary approvals, including competition clearance. usual anticipated.

It has also indicated that, under the proposed terms, SBB would retain the right to acquire shares in EduCo in the future.

"The decision to enter into exclusive talks to sell EduCo is a strategically important decision for SBB that allows for the creation of additional leeway in these difficult times," said Leiv Synnes, SBB's CEO.

"We have previously said that in the framework of the strategic review, we will act comprehensively and quickly, and that is exactly what we are doing now. The sale of EduCo would mean that SBB would improve its liquidity and could reduce its indebtedness," concluded the executive.

Last November, Brookfield agreed to pay about 9,200 million Swedish crowns (787 million euros) for 49% of EduCo, in addition to an additional commitment of up to 1,200 million crowns (103 million euros).

Last week, the Swedish Financial Supervisory Authority (FI) announced the opening of an investigation into whether real estate company Samhällsbyggnadsbolaget i Norden (SBB) breached certain accounting rules in its 2021 consolidated results.

Specifically, it will assess whether the company has violated various provisions of the European Parliament and of the Council regarding the application of international accounting standards and the ESMA guidelines on alternative ratios regarding the valuation of real estate, properties, as well as the accounting of asset acquisitions and alternative key figures.