Tuesday, 3 October, 2023

Sweden’s SBB mulls sale of its assets

STOCKHOLM: Sweden's troubled real estate group SBB said Monday it may sell assets or the entire company as the country's property sector struggles in the face of rising interest rates.

SBB reported a loss of 2.9 billion kronor ($360 million) in the first quarter as housing prices fell in Sweden after the central bank raised borrowing costs to battle high inflation, reports AFP.

Earlier this month, the company halted dividend payments and suspended plans to raise funds after its credit rating was cut to junk status by ratings agency S&P.

SBB's has a real estate portfolio worth more than 134 billion kronor.

The company said it has broadened the review of strategic options to include "a sale of the company, business segments, or specific assets, as well as other strategic transactions".

"The Board of Directors has decided that it is in the best interest of the shareholders to broaden its review of strategic options to determine which of the available alternatives maximise shareholder value," it added.

SBB shares surged on the Stockholm stock exchange following the announcement.

After peaking in December 2021, the company's market capitalisation has fallen tenfold to 8.1 billion kronor.