Brookfield to buy 49% stake in Swedish SBB's education unit for $870 million

Follow us on Google News:
 Brookfield to buy 49% stake in Swedish SBB's education unit for $870 million
Image source: ©2022 Kalkine Media®

(Reuters) -Brookfield Asset Management will buy a 49% stake in the education portfolio of Sweden's SBB, for 9.2 billion Swedish crowns ($870.42 million) in cash, the Swedish real estate company said on Wednesday.

Brookfield, through its infrastructure fund Brookfield Super-Core Infrastructure Partners, will also make two additional earn-out payments of up to 1.2 billion crowns in cash, SBB said in a statement.

EduCo, the education subsidiary of SBB, will also enter into an asset management agreement with SBB to pay 1.8% of its net operating income per annum.

The SBB unit's debt financing includes an existing external bank financing of nearly 6.9 billion crowns and inter-company financing of 14.5 billion crowns, with a tenor of up to six years.

The deal is likely to be completed in two stages -- a part closing when 77% of the asset value will be transferred to EduCo by the end of this year. The second step that entails transfer of remaining assets could be completed in the first or second quarter of 2023.

($1 = 10.5696 Swedish crowns)

(Reporting by Juby Babu in Bengaluru; Editing by Dhanya Ann Thoppil)


The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK