Our 'BBB-' long-term issuer rating on LSTH Svenska Handelsfastigheter AB (publ) and stable outlook are unchanged following an announcement on 16 May 2024 that Kåpan Tjänstepensionsförening (Kåpan) and the Fourth AP-fund (AP4) are acquiring Länsförsäkringar Liv Försäkringsaktiebolag (publ)'s shares in the company. Following the acquisition, Kåpan and AP4 will each own stakes of just under 50%. The remainder is held by the company's CEO. The acquisition was transacted at market value, effectively affirming the company's property values. We expect the transaction to close in June.
The acquisition follows a recent simplification of Svenska Handelsfastigheter's capital structure, when preference shares were converted to common equity. We maintain our view that the simpler structure reduces obstacles to accessing new equity and improves transparency. In our opinion, the main owners' financial strength and increased stakes underscore their commitment to the company and the likelihood of owner support. We believe that the two owners give Svenska Handelsfastigheter greater financial flexibility that will enable the company to act on potential investments while maintaining its financial risk profile.
This commentary does not constitute a rating action.
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Yun Zhou, analyst, +46732324378, yun.zhou@nordiccreditrating.com