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Serneke: Clouds are dispersing - Nordea

2020 was intense for Serneke, with the construction of Karlatornet slowing to a crawl after Oaktree decided to back out of the acquisition in March.The company had searched actively for a financing solution for the project, and reached an agreement on 17 December 2020 with Balder.

With Karlatornet back on track, value-creating divestments to underpin the value of its building rights portfolio in Karlastaden, and a restructuring programme targeted to yield annual savings of SEK 200m from 2021E, we argue that Serneke's future looks quite bright.

Serneke still has a lot to prove to gain investor confidence, however, and the key focus for 2021 is on efforts to improve profitability by reducing costs and improving predictability within its operations. We lift our SOTP-based fair value range to SEK 85-122 (50-90) mainly owing to proof of values in Karlastaden.
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