SBB shares flatten from initial rise after JM stake sale

JM AB

12/05/2023 08:49

** Shares in SBB  SBBb.ST  jumped as much as 9% before
pairing gains, after the Swedish real estate company sold its
stake in construction company JM  JM.ST 
    ** The landlord had sold most of its stake in JM, about for
2.8 billion Swedish crowns ($275.79 million), giving a
much-needed cash infusion
        ** SBB 
    scrapped
     a share issue earlier this week when ratings agency S&P
Global downgraded the company's debt to so-called 
    junk status
  
    ** The stock, which lost nearly 37% so far this week and is
on track for its biggest weekly losses in more than three years,
was down 2% by 0749 GMT
    ** Carlsquare analyst Bertil Nilsson says the sale reduces
SBB's interest costs by some SEK 64 million, but adds the
company will not be able to post SEK 626 million in results from
JVs anymore
    ** "SBB will sell real estate for SEK 6 billion as soon as
possible this year," Nilsson adds
    ** Shares in JM rise 7.1%




($1 = 10.1526 Swedish crowns)

 (Reporting by Greta Rosen Fondahn; Additional, Marie Mannes)
 ((Greta.RosenFondahn@thomsonreuters.com))