A decision in the case between Peab and Unibail Rodamco Westfield regarding the contract for Mall of Scandinavia in Solna was handed down on June 30, 2023. Unibail Rodamco Westfield has now petitioned the Swedish Court of Appeal to set aside the judgment in its entirety in a so-called protest action. In conjunction with this a request for a suspension was made and also granted today. This means that for the time being the judgement cannot be enforced and therefore Peab cannot count on a payment in the third quarter as previously communicated.
In connection with the judgement Peab communicated a positive effect on operating profit of SEK 400 million and a pre-tax profit effect of SEK 790 million in the second quarter as well as an expected positive cash flow of approximately SEK 1,400 million in the third quarter. Peab’s assessment of the estimated effects on profit has not changed. After a thorough legal trial through arbitration lasting nearly seven years Peab cannot see any grounds whatsoever for a protest action. We will counter the protest action and request that the Swedish Court of Appeal reconsiders its decision to suspend the judgement. As long as the arbitration judgement is suspended it is not enforceable, which defers the time of payment.
For further information, please contact:
Juha Hartomaa, Head of Investor Relations Peab, +46 725 33 31 45