Swedish property company Samhallsbyggnadsbolaget i Norden (SBB) has announced exclusive talks with Brookfield Asset Management to sell its remaining 51% stake in the SBB EduCo, it’s Nordic education portfolio. The stake is valued at SEK14.5 billion ($1.35 billion), and the deal will also include the repayment of the intercompany loan debt which SBB provided as financing to SBB EduCo.
This comes after last year’s transaction, which saw Brookfield acquire a 49% stake in the SBB EduCo for SEK10.4 billion. The portfolio focuses on social infrastructure for public education, including preschools, elementary schools, upper-secondary schools and universities. The EduCo subsidiary was created as part of the deal.
SBB anticipates that the share-purchase agreement will be reached in July, subject to clearance from regulators. The deal would allow SBB the option to acquire shares in EduCo in the future.
Swedish Landlord SBB to Sell EduCo Amid Tough Times
Swedish landlord Samhällsbyggnadsbolaget i Norden AB (SBB) has announced that it is in exclusive discussions to sell off its education unit, EduCo. The move comes as part of its strategy to raise cash and reduce indebtedness following a sharp increase in interest rates.
After an S&P downgrade, the company was forced to shelve plans for a rights issue and postpone dividend payments. Founder Ilija Batljan resigned as CEO and a review of strategic options was initiated.
“The decision to enter exclusive discussions to sell EduCo is a strategically important decision for SBB which enables the creation of additional maneuvering room in these challenging times,” said recently appointed CEO, Leiv Synnes.
Synnes also said that the sale would improve liquidity and reduce indebtedness. SBB shares have dropped 75% in value this year, but saw a 21% rise in early trading Monday.