SBB strengthens liquidity by stopping payment of dividend and revokes the rights issue of ordinary D-shares

The board of directors Samhällsbyggnadsbolaget i Norden AB (publ) (”SBB”) today announces its intention to stop the resolved payment of dividend and instead postpone the payment date to occur at the latest ahead of the annual general meeting 2024. The company also declares that it will not carry out the previously announced rights issue of ordinary D-shares of SEK 2.63 Bn. SBB continues to work with previously announced disposals in order to continue to strengthen the company’s financial position. The measures described above are intended to strengthen the company’s liquidity.

SBB announced on 28 April 2023 its intention to carry out a rights issue of ordinary D-shares in order to lower the company’s debt and thereby strengthen the company’s financial position and ensure an investment grade rating. Earlier today S&P declared that the company’s rating is lowered to BB+ with a negative outlook, meaning that the interest on the company’s debt will increase. The market reaction thereafter has made it impossible to carry out the rights issue of ordinary D-shares on the intended terms. Against this background, the board of directors has instead decided to strengthen the liquidity in the company by proposing to an extraordinary general meeting to resolve on an authorization for the board of directors that would enable a postponement of payment of dividend, in accordance with what is presented below.

Postponing of the payment dates for the dividend resolved on by the annual general meeting 2023

• The annual general meeting 2023 resolved to distribute dividend to the ordinary shareholders with SEK 1.44 per Series A and Series B share to be distributed monthly and SEK 2 per Series D share distributed quarterly in accordance with the board of directors’ proposal.
• The board of directors intends to, within short, convene an extraordinary general meeting in order to amend the dividend resolution such that the payment date for the dividend shall be able to be postponed by the board of directors. The proposal entails that the board of directors shall be authorized to resolve on the record date for payment of the dividend, which shall occur such that payment of the dividend has been carried out not later than the annual general meeting 2024. The company’s current assessment is that record date and payment will take place, regardless of share series, shortly prior to the annual general meeting 2024. The annual general meeting 2024 is expected to be held in the middle of May 2024.
• The extraordinary general meeting is planned to be held in the beginning of June 2023 and as such, the planned record dates for dividends for ordinary A-shares and B-shares on 9 May 2023 and 28 May 2023 will occur as planned. The remaining record dates for ordinary A-shares and B-shares, which would have occurred on a monthly basis, and the remaining record dates for ordinary D-shares, which would have occurred on a quarterly basis, will, subject to the approval of the general meeting and the board of directors’ subsequent resolution to postpone dividends, not take place on the announced dates but instead be postponed.
• At the annual general meeting 2023 it was resolved to give shareholders the possibility to choose to receive their dividend in cash or in a claim entitling the holder to a set-off against newly issued shares in the company. The resolution was conditional upon the board of directors finding it practicably possible to offer such a possibility to the shareholders, and the expectation was that such an offer would in such case be presented during the third quarter 2023. As a consequence of the adjusted dividend record dates, such a proposal is no longer expected to be presented in the third quarter of 2023.

The Company will not carry out the previously communicated rights issue of ordinary D-shares

• The board of directors of SBB announced on 28 April 2023 its intention to carry out a rights issue of ordinary D-shares, which was intended to be resolved on during the second quarter 2023 based on the authorization resolved on by the annual general meeting 2023.
• The board of directors today announces that the announced rights issue will not be carried out due to the market reactions and the negative development of the SBB share price, which has made it impossible to carry out the rights issue at its announced terms.

Ilija Batljan, CEO and founder of Samhällsbyggnadsbolaget i Norden AB.

For further information, please contact:

Helena Lindahl, Treasury director & IR, ir@sbbnorden.se

This disclosure contains information that Samhällsbyggnadsbolaget i Norden AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 8 May 2023 at 22:55 CEST.

Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) is the Nordic region’s leading property company in social infrastructure. The Company’s strategy is to long term own and manage social infrastructure properties in the Nordics and rent regulated residential properties in Sweden, and to actively work with property development. Through SBB’s commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the Company an attractive long-term partner. The Company’s series B shares (ticker SBB B) and D shares (ticker SBB D) are listed on Nasdaq Stockholm, Large Cap. Further information about SBB is available at www.sbbnorden.se.