Other information
Significant events during the period
Peab has entered agreements for new credit facilities totaling SEK 7.4 billion
Peab has entered agreements for new credit facilities divided into two contracts. One is a three year credit facility for a total of SEK 7.0 billion and the other is an 18 month credit facility of SEK 400 million. The credit facility for SEK 7.0 billion runs until June 15, 2026 with the possibility of an extension for one plus one year. Four banks participate in the transaction: Nordea, Swedbank, SEB and Handelsbanken. The transaction is coordinated by Nordea. Peab has also entered an agreement for a bilateral credit facility with Nordea for SEK 400 million. The contract runs for 18 months and matures on December 15, 2024 with the possibility of an extension for another year. The credit agreements refinance the company’s existing credit facility and are prepared for sustainability linking. The loan contracts make up Peab’s long-term financing foundation and are complemented by capital market financing, other types of short-term financing and project-related credit.
Arbitration decision in the case of Mall of Scandinavia
A decision in the case between Peab and Unibail Rodamco Westfield regarding the contract for Mall of Scandinavia in Solna was handed down on June 30, 2023. The judgement entailed a positive effect on Peab’s operating profit by SEK 400 million in the second quarter. The effect on pre-tax profit was SEK 790 million in the second quarter. Cash flow would have been positively affected by approximately SEK 1,400 million in the third quarter, which did not occur.
In August Unibail Rodamco Westfield petitioned the Swedish Court of Appeal to set aside the judgment in its entirety in a so-called protest action. In conjunction with this a request for a suspension was made and also granted. This means that for the time being the judgement cannot be enforced and therefore Peab has not received payment in the third quarter. Therefore Peab continues to have an outstanding receivable of about SEK 1,400 million on Unibail Rodamco Westfield.
Peab’s assessment of the estimated effects on profit has not changed. After a thorough legal trial through arbitration lasting nearly seven years Peab cannot see any grounds whatsoever for a protest action. Peab will counter the protest action and request that the Swedish Court of Appeal reconsiders its decision to suspend the judgement. As long as the arbitration judgement is suspended it is not enforceable, which defers the time of payment.
Peab received the contract for Mall of Scandinavia in December 2010 and the mall was completed and ready for inauguration November 2015. Peab believed it was entitled to compensation for added expenses generated by extensive changes in the project made during the production phase. The parties could not agree on outstanding claims and transactions and arbitration commenced in 2017.
Significant events after the period
No significant events occurred after the end of the reporting period.
Holdings of own shares
At the beginning of 2023 Peab’s own B shareholding was 8,597,984 which corresponds to 2.9 percent of the total number of shares. No changes have taken place during the period January-September 2023.
Related parties
The character and extent of transactions with related parties is presented in the Annual and Sustainable Report 2022, note 41. For more information about transactions with related parties during the period see business area Project Development. No other new significant transactions have occurred during the period January-September 2023.
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