Sveafastigheter (SVEAF) M&A announcement summary

Deal rationale and strategic fit

• Merger creates the largest listed residential property company on Nasdaq Stockholm, with a portfolio of about 26,500 apartments and SEK 47 billion in property value.

• Enhanced scale, geographic diversification, and improved credit profile are expected to attract broader investor interest and support long-term value creation.

• The combined company will operate under the Sveafastigheter brand, integrating Sveafastigheter, KlaraBo, and the SBB Portfolio.

Financial terms and conditions

• KlaraBo shareholders receive 9 new Sveafastigheter shares for every 22 KlaraBo shares, with an implied equity value for KlaraBo of SEK 2,035 million.

• Merger consideration reflects a 0.6% premium to KlaraBo’s adjusted closing price and 4.9% to its 30-day VWAP.

• KlaraBo will pay an extraordinary dividend of SEK 1.40 per share, conditional on merger approvals.

• SBB Portfolio acquisition by KlaraBo is paid in newly issued shares, with SBB receiving Sveafastigheter shares as part of the merger.

Synergies and expected cost savings

• Annual cost synergies estimated at a minimum of SEK 120 million, with SEK 55 million from property expenses and SEK 30 million from central administration.

• Financing synergies of at least SEK 35 million expected over time as refinancing occurs.

• Integration costs are expected to be SEK 5 million, with full synergy realization within 12 months post-merger registration.