Balder up as it raises SEK 1.8 bln through private placement

Fastighets AB Balder

16/12/2022 09:14

** Shares in Fastighets Balder  BALDb.ST  rise 3.4% after
the Swedish real estate firm carried out a directed issue of 35
mln shares for proceeds of almost SEK 1.8 bln ($174 mln)
    ** Carlsquare analyst Bertil Nilsson says the subscription
price values Balder at a 34% discount to its NAV and P/E 11
times on its earning capacity before value changes on properties
    ** "At the same time, the rights issue is only 3% dilutive
in relation to the total market cap of Balder," Nilsson says
    ** Balder says it will use the proceeds to repurchase part
of its hybrid bonds
    ** "Combined with the recent decision to cancel Castellum's
dividend to its shareholders, this reinforces the impression
that Swedish real estate companies are strengthening their
balance sheets at rather rapidly," Nilsson says
    ** Balder is among the top performers on the pan-European
STOXX 600 index  .STOXX 
($1 = 10.3420 Swedish crowns)
 (Reporting by Louise Breusch Rasmussen)
 ((Louisebreusch.rasmussen@thomsonreuters.com))