On 15 Aug. 2023, Sweden-based property manager LSTH Svenska Handelsfastigheter AB (publ) published its plan to revise its capital structure in the first quarter of 2024, replacing its common and preference shares with a single share class. Further, the company intends to redeem a smaller proportion of shares from some existing owners.
The revision follows renewed shareholder commitments of SEK 1.2bn during spring 2023 from the current owners of preference shares, Kåpan Tjänstepensionsförening, the Fourth AP-fund and Länsförsäkringar Liv Försäkringsaktiebolag. The owners will obtain larger influence over the company following the completion of the process. Details about the revised capital structure is expected to be published in Feb. 2024.
In our assessment of Svenska Handelsfastigheter's financial ratios, we have applied a 100% equity treatment to the company's preference shares, which will leave the key credit metrics unaffected by the planned change. The planned revision of the capital structure change was incorporated in our most recent affirmation of the company's rating on 3 Jul. 2023.
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