Swedish property company Heimstaden Bostad AB (publ) plans a cash rights issue of approximately 7.2 billion Swedish kronor on Jan. 7, 2020.
An investor group including Folksam AB, Folksam Ömsesidig Livförsäkring, Folksam ömsesidig sakförsäkring and KPA Pension AB will become new owners of Heimstaden Bostad after subscribing to roughly 4 billion kronor of the rights issue, with Heimstaden Investment AB to subscribe to the rest. Following the subscription, the Folksam group will hold a 7% stake in Heimstaden Bostad, making it the second largest institutional investor in the company.
The Folksam group is investing parallel to other institutional investors, Alecta and the pension schemes of Ericsson and Sandvik.
As a result of the investment, Heimstaden Bostad's board will add two members, including Folksam Head of Alternative Investments Birgitta Stenmark and Heimstaden Bostad Chief Communications and Marketing Officer Karmen Mandic.
J.P Morgan Securities and DLA Piper were financial and legal advisers to Heimstaden Bostad, while DLA Piper and PWC performed legal, tax and financial due diligence.
As of Dec. 17, US$1 was equivalent to 9.38 Swedish kronor.