Arbitration in the case of Mall of Scandinavia has been decided – pre-tax profit positively affected by SEK 790 million in the second quarter

A decision in the case between Peab and Unibail Rodamco Westfield regarding the contract for Mall of Scandinavia in Solna was handed down on June 30, 2023. The judgement entails a positive effect on Peab’s operating profit by SEK 400 million in the second quarter. The effect on pre-tax profit is SEK 790 million in the second quarter. Cash flow will be positively affected by approximately SEK 1,400 million in the third quarter.

Peab received the contract for Mall of Scandinavia in December 2010 and the mall was completed and ready for inauguration November 2015. Peab believed it was entitled to compensation for added expenses generated by extensive changes in the project made during the production phase. The parties could not agree on outstanding claims and transactions and arbitration commenced in 2017. The arbitration decision was announced on June 30, 2023.

”We’re very pleased that arbitration has now been concluded and that our claim was successful. We’re proud of our construction of Mall of Scandinavia,” says Jesper Göransson President and CEO of Peab.

The dispute is thereby over and there are no remaining risks related to the contract Mall of Scandinavia.

For further information, please contact:

Juha Hartomaa, Head of Investor Relations Peab, +46 725 33 31 45

This information is information that Peab AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on June 30, 2023, 7:20 p.m. CET.

Peab is the Nordic Community Builder with 15,000 employees and net sales of SEK 63 billion. With a local presence and focus on our own resources we develop, do the groundwork and build everyday life where it’s lived. Company headquarters are in Förslöv on Bjäre Peninsula in southern Sweden. The Peab share is listed on Nasdaq Stockholm.