Swedish real estate baron in a debt crunch sitting on BEWI and KMC Properties

by
Editorial staff

Will Rutger Arnhult sell?

Through the investment company M2 Asset Management, Rutger Arnhult is one of Sweden’s largest property investors. Castellum, which has a portfolio of 689 properties, is the mainstay of the portfolio. At the end of last week, M2 sold most of the shares in Castellum, where Arnhult is also CEO, for a total of SEK 4.6 billion (€418.5 million).

Arnhult explained to Dagens Industri that it is the loan-to-value ratio in M2 that is too high, not that the equity is too low. He stated at the same time that there is no question of a forced sale.

In total, M2 got rid of 40 million shares in Castellum, corresponding to 12.2 percent of the capital. In a press release, M2 wrote that “the sale is being made due to falling stock market prices in M2’s holdings, which has affected M2’s ability to fulfill its financial obligations”.

Stock market price BEWI. Source: Infront

Arnhult believes that the sale is considered to ensure the company’s ability to fulfill all future financial obligations.

Among M2’s largest investments are Norwegian BEWI and KMC Properties. BEWI is M2’s fifth largest holding, with 8.2 million shares at a value of NOK 390 million (€39 million). That makes M2 Bewi’s third largest shareholder, writes Finansavisen.

The fish box manufacturer BEWI is also the largest shareholder in KMC with 70 per cent of the shares worth NOK 1.3 billion (€130 million) . KMC owns a large number of fishing industry properties, including several of BEWI’s factories. KMC also plans to build a new salmon slaughterhouse in Florø.

BEWI, which was the stock exchange winner in 2021, has struggled heavily this year. So far in 2022, the stock is down 47 percent.

BEWi’s factory in Frøya. Photo: Ronny Teigås
Newsletter