Heimstaden - comment

Sweden’s FSA announced this morning that they have widened the investigation concerning Heimstaden. Specifically, they will investigate whether Folksam Liv, Folksam Sak, KPA Pension and the Pensions Authority have followed the applicable rules concerning their investments in Heimstaden Bostad. Previously the FSA announced the investigation into Alecta’s investments into Bostad which resulted in questions being asked of the other equity providers.   The FSA are not investigating any Heimstaden entity.  

Folksam holds an 18% stake, with the Pension Authority holding c.2%. Newsflow has died on the name, and with the perps trading back up into the 50’s the opportunity for the Company to create equity value by purchasing perps at a discount is diminishing. The investigation is backward-looking and it would unlikely prevent further investments into Bostad.

https://www.fi.se/sv/publicerat/nyheter/2024/finansinspektionen-undersoker-folksam-kpa-och-pensionsmyndigheten/