Property firm SBB shares up 37% on cash infusion, end of strategy review

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Property firm SBB shares up 37% on cash infusion, end of strategy review
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OSLO (Reuters) - Shares of Swedish property group SBB rose 37% in early trade on Monday after it announced on Sunday it would reorganise its business, ...

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OSLO - Shares of Swedish property group SBB rose 37% in early trade on Monday after it announced on Sunday it would reorganise its business, securing an 8 billion crown cash boost and ending a strategic review. SBB, under pressure to cut its debt amid soaring interest rates, said in May it might sell all or parts of its business, but talks to divest its remaining 51% stake in education subsidiary EduCo later collapsed.

SBB on Sunday said it had instead agreed to sell a 1.16% stake in EduCo to a unit of Canada's Brookfield Asset Management for 242 million crowns, and will also receive repayment of a 7.8 billion inter-company loan.

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