Rutger Arnhult will leave his position as CEO at the latest on 25 March 2021. Klövern’s board of directors will now initiate a search process for a new CEO. Rutger Arnhult has been the CEO of Klövern since 1 January 2012.

Today, Rutger Arnhult has also informed Klövern’s board of directors and Nomination Committee that he intends to leave the board of Klövern on 25 March 2021 and that he is not available for re-election to the board of Klövern. complete proposal of the members of the Board of Directors will be made at a later point in time, ahead of the Annual General Meeting in Castellum. The intention of the Election Committee is to make such proposal as soon as possible.

The Election Committee in Castellum proposes to nominate Rutger Arnhult as Chairman of the Board in Castellum. Rutger Arnhult has informed the Election Committee that he will resign as the CEO of Klövern and as a member of the board in Klövern and Corem Property Group. The Election Committee’s proposal concerning the Chairman of the Board in Castellum is made by a majority of the members of the Election Committee. The committee members Vincent Fokke, repre­sen­ting Stichting Pensioenfonds ABP, and Charlotte Strömberg, Chair of the Board in Castellum, have stated that they do not support such proposal and have made a reservation against the proposal.

Statement by Vincent Fokke and Charlotte Strömberg: We do not support the proposal to nominate Rutger Arnhult as the Chairman of the Board and have reserved us against such proposal because of the following main reasons:

1) Rutger Arnhult is, together with related parties, in practice controlling the listed real estate companies Klövern and Corem Property Group. These companies are competitors of Castellum. We do not believe it would be to the benefit of all shareholders in Castellum, nor in accordance with good corporate practice, to have a Chairman of the Board in Castellum that is engaged in competing business. It will not make any difference in practice if Rutger Arnhult resigns as the CEO of Klövern and as a member of the board in Klövern and Corem Property Group. Even if this would be a permanent arrangement, Rutger Arnhult will still be very much engaged in the businesses of these competitors of Castellum.

2) Being a large shareholder in Castellum it is reasonable that Rutger Arnhult can influence the composition of the Board in Castellum. Last year the Election Committee proposed Joacim Sjöberg as a member of the Board following a nomination from Rutger Arnhult. This year Rutger Arnhult would like to become the Chairman of the Board. We believe it would be overrepresentation if Rutger Arnhult may, in a company like Castellum, appoint two Board members, including the Chairman, out of six to eight Board members in total based on a share­holding of approximately 15%.

3) The current Board is well-functioning and has delivered excellent shareholder return during a number of years combined with a low risk profile. We believe it may be detrimental to the work of the Board of Castellum to have a Chairman of the Board that is engaged in competing business. Furthermore, we believe there is an elevated risk that some of the current Board members will not stay on the Board in case Rutger Arnhult is elected the Chairman of the Board.