FÖRSLÖV, Sweden--(BUSINESS WIRE)--Regulatory News:
Peab (STO:PEABB)is divesting a number of assets in Solna to Fabege:
- Peab’s entire holdings in Arenabolaget i Solna KB which owns Friends Arena, corresponding to 17.2 percent.
- All Peab’s receivables to Arenabolaget i Solna KB.
- Peab’s entire holdings in Fastighetsbolaget Visio Utveckling AB, corresponding to 50 percent, which owns assets connected to Friends Arena as well as development rights in Råsta.
- Property and development rights in Ulriksdal.
The divestitures in Ulriksdal refer to the completed property Distansen 6 that has 11,000 m2 rentable space where Johnson & Johnson rents as well as a garage with 327 parking spaces and 15,000 m2 commercial development rights.
The divestitures in Ulriksdal generate a positive operating result of around SEK 180 million. The divestitures of assets connected to Arenabolaget and Visio generate a negative operating result of around SEK 180 million.
The transactions will be implemented and recognized in the first quarter of 2017 and will have no net effect on the result. After the turnover in January 2017 Peab’s liquidity will have increased by some SEK 900 million and net debt will be reduced by around SEK 500 million.
The deal is part of a larger transaction in which Solna Municipality and Jernhusen will also divest their holdings in Arenabolaget to Fabege. For it to go through the deal must be approved of by Solna City Council, which is expected to take place on 19 December 2016.
Jesper Göransson, President and CEO of Peab, comments:
“Peab has been involved in extensive construction and major investments in Arenastaden for over 10 years. We are proud to have been part of this project and the area has gone through a fantastic development. The business deals connected to Friends Arena are good for everyone and will provide the arena with a solidfoundation for further development. For Peab it liberates a significant amount of tied-up capital that we can then invest in continued project development.”
“The divestiture of Ulriksdal demonstrates that Peab can successfully develop a project starting with acquiring the necessary land and ending with finished and rented property on the local market. Peab will continue to be a strong player in Solna’s development. We still have considerable development rights in Råsunda and Ulriksdal.”
Peab is one of the leading Nordic construction and civil engineering companies with more than 14,000 employees and net sales of over SEK 45 billion. The Group has strategically located offices in Sweden, Norway and Finland. The Peab’s registered office is located in Förslöv on Cap Bjäre in south of Sweden. The Peab share is listed on Nasdaq Stockholm.
Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 25 November 2016 at 8:00 a.m.
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