Rights issue plans dent Castellum shares
13/02/2023 09:04
** Castellum's CAST.ST shares fall 5% after the Swedish
real estate firm announced its intention to carry out a rights
issue of around SEK 10 bln ($0.96 bln), posted Q4 report
** The company reported income for the quarter rising to SEK
2.26 billion and flagged that prospects for 2023 are divided but
the group would face the challenges ahead with humility
** J.P.Morgan says, though, the "results will take a
back seat" given the planned new share offering
** The broker notes the proposal will need to be approved at
the AGM and while it is fully underwritten (with Akelius set to
vote in favour and subscribe pro-rata) it does present a
significant overhang for the shares with timing is set for Q2
2023
** Bertil Nilsson from Carlsquare flags Castellum's rights
issue proposal is bringing down other real estate stocks
** "The market is probably beginning to anticipate that more
real estate companies will have to follow Castellum's lead and
issue new shares to strengthen their balance sheets," he says
** Shares of other Swedish real estate companies Balder
BALDb.ST , Wallenstam WALLb.ST , SBB SBBb.ST and Sagax
SAGAa.ST slide 2-4% in Monday's morning trade
** Castellum stock is among worst performers on STOXX 600
index .STOXX
(Reporting by Agnieszka Gosciak-Rabalska)
((Agnieszka.Gosciak@thomsonreuters.com))