Kungsleden negotiates divestment
Press Release 29 November 2006
Listed Swedish property company Kungsleden AB (publ) has signed a letter of intent regarding the divestment of Swedish commercial properties worth approximately SEK 2 billion.
This transaction is conditional on the buyer arranging funding. Providing the divestment is definitively consummated, the expected capital gain is about SEK 300 m with profit for calculating dividends* of approximately SEK 400 m.
The potential buyer will now conduct its due diligence process. Assuming funding is secured and due diligence proceeds according to plan, a binding agreement is scheduled for signing in late-January/early-February 2007, with transfer of possession in the second quarter 2007.
* Profit for calculating dividends means profit after tax excluding unrealized value changes (that do not affect cash flow) and deferred tax. Profit for calculating dividends includes realized value changes. This profit measure corresponds to the cash flow statement item cash flow from operating activities before change in working capital.