SBB Norden - comment
The latest card shuffling by SBB is positive news for creditors, but doesn’t change a lot. We are puzzled at the rationale, but it does allow both sides to claim a transaction at book value, without having to test the actual market value of assets. Sveafastigheter and KlaraBo will merge with SBB, receiving cash of SEK1.6bn in return for the transfer of a net SEK4bn book value of assets to KlaraBo. (Sek6.8bn less the Morgan Stanley debt). KlaraBo will then merge its business with Sveafastigheter, receiving 4.5%. Both KlaraBo and Sveafastigheter trade at a significant discount to their net assets and hope that the greater scale of the combined business will help close that discount.