Bulletin from Extraordinary General Meeting in K-Fast Holding AB (publ)

Today an Extraordinary General Meeting was held in K-Fast Holding AB (publ) (“K-Fastigheter” or the “Company”). The Extraordinary General Meeting resolved to approve the Board of Directors’ resolution on issuance of new shares with deviation from the shareholders’ preferential rights in accordance with the proposal presented in the notice to attend the Extraordinary General Meeting which has been kept available at the Company’s website (www.k-fastigheter.com).

As communicated in the Company’s press releases from 28 September 2023, the Board of Directors of K-Fastigheter resolved on 28 September 2023 to issue a total of up to 24,000,000 series B shares. The capital raise was carried out through two separate resolutions on share issues, partly as a directed issue of 18,180,000 series B shares, pursuant to the authorization to issue shares granted by the Annual General Meeting held on 15 May 2023, through an accelerated book-building procedure targeting Swedish and international institutional investors, partly as a directed issue of 5,820,000 series B shares, subject to approval at an Extraordinary General Meeting of the Company, directed to Erik Selin Fastigheter AB (a company owned by Erik Selin, Chairman of the Board of Directors of K-Fastigheter). The latter of these shares issues has now been approved by the Extraordinary General Meeting. The subscription price in both share issues amounted to SEK 13.80 per share and had been determined through an accelerated book-building procedure carried out by Nordea Bank and Swedbank.

The new share issue approved by the Extraordinary General Meeting entails an increase of the Company's share capital by up to SEK 1,552,000 through a new issue of no more than 5,820,000 new series B shares, each with a quota value of SEK 0,266667.

The Board of Directors of the Company has made an overall assessment and carefully considered the possibility to raise capital through a rights issue with preferential right for the Company’s shareholders. The Board of Directors considers that the reasons for deviating from the shareholders’ preferential right are (i) that a rights issue would take a significantly longer time to complete and entail a higher risk for an adverse effect on the share price, particularly in light of the current market volatility and the challenging market conditions, (ii) that the participation in the issue from one of the Company’s principal shareholders has a positive impact on the possibility of simultaneously carrying out the new issue of 18,180,000 series B shares targeting Swedish and international institutional investors, and (iii) to carry out a directed share issue can be made at lower costs and with less complexity than a rights issue. Considering the above, the Board of Directors has made the assessment that a directed issue of series B shares with deviation from the shareholders’ preferential right is the most favourable alternative for K-Fastigheter to carry out the capital raise.

For more information on the new share issue, please refer to the press releases published on the Company's website on 28 September 2023.

For more information, please contact:
Johan Hammarqvist, Head of Investor Relations and Communications
e-mail: [email protected], telephone: +46 10 167 60 99
 

This information was submitted for publication, through the agency of the contact person set out above, on 24 October 2023, at 6 PM CET.

As a property company, K-Fastigheter’s objective is to add value for tenants by creating attractive homes with superior comfort. The Group’s operations encompass active property management, project development and proprietary construction operations. To enhance cost efficiency and cut construction times, K-Fastigheter has chosen to work with three concept buildings, developed in-house and constructed for proprietary management. K-Fastigheter provides some 4,000 homes in several locations in the Öresund region, in the province of Småland and in western Sweden, and is assessing new markets as production capacity increases. The Group’s property portfolio has a book value SEK 14,3 billion, with an annual rental value of about SEK 528 million. Since November 2019, the company’s Class B shares have been traded on Nasdaq Stockholm under the (ticker: KFAST B). Read more at k-fastigheter.com