The merger is a result of the ongoing negotiations that the company communicated in a press release on October 13, 2020 and takes place through the Company acquiring all shares in Studentbostäder in Sweden with consideration in the form of newly issued preference shares of series B and series C. Prime Living also continues its previously announced recapitalization plan.
Studentbostäder i Sverige's operations consists of managing and developing student housing and its property portfolio comprises approximately 3,000 student housing with a property value of SEK 2.3 billion. The merged company will have a property portfolio with over 4,000 student housing units and a property value of SEK 3.4 billion. In addition, the merged company will have a project portfolio with approximately 2,000 student housing units, for example in Spånga, Karlstad, Lund and Växjö.
Through the Merger, the shareholders in Studentbostäder in Sweden will together own approximately two thirds of the shares in the merged company. As part of the Merger, it is proposed that the Company change its name to Studentbostäder i Sverige AB (publ) and that the board of the merged company be proposed to consist of Björn Rosengren, Chairman of the Board, and Karin Krook, Rosel Ragnarsson and Sven-Göran Svensson, Board members. The largest shareholders in the merged company also agree to appoint a nomination committee consisting of Ilija Batljan (CEO SBB), Joachim Kuylenstierna (CEO Fastator), Bengt Kjell (Chairman of the Board Amasten) and Björn Rosengren (proposed Chairman of the Board).
The major shareholders in Studentbostäder i Sverige have undertaken to guarantee SEK 150 million in a new share issue that will be carried out after the Merger is completed.