Approximately 1,000 prior preference shareholders have joined the group claim against Balder. The claims that have been transferred to Kapatens totals approximately SEK 49,000,000 plus interest.
On 29 January 2021, Kapatens sent formal letters demanding payment of
SEK 75,000,000 (including interest). The company has denied any obligation to pay.
On 9 March 2021, Kapatens, through its legal counsel at Baker & McKenzie filed a complaint against Victoria Park with Malmö District Court. The dispute against Victoria Park concern the same legal issue as the dispute against Balder. The reason for the initial pilot case is that the court shall clarify that there is a right to compensation due to non-payment of dividends. Victoria Park filed its statement of defense on 4 May 2021 and Kapatens filed its second submission on 7 June 2021. No date for the main hearing has yet been scheduled. The outcome of the pilot case is of importance for the dispute against Balder.
If you owned preference shares in the Swedish real estate company Fastighets AB Balder when such shares were redeemed in October 2017, you have not received the dividends you were entitled to. Kapatens organizes and finances a group claim against Balder, by which we make it possible for you and other shareholders to receive compensation, without any risk or cost.
A condition for participation is that you owned shares which were redeemed on the record date 9 October 2017. The claim amounts to 15 SEK per share, excluding interest. If our group claim is successful, you will receive 60 percent of the amount which we collect from Balder.
Kapatens will accept further registrations. However, participation is conditioned upon the company not already having made payment as per Kapatens’ demand or having entered into a settlement before Kapatens has been able to adjust its claim against the company following new registrations.
Kapatens, together with its legal counsel at the international law firm Baker McKenzie, has concluded that Balder did not pay the dividends you were entitled to when your preference shares were redeemed. The shareholders’ total claim amounts to at least 150 million SEK, excluding interest. Kapatens organizes a group claim by acquiring the shareholders’ right to compensation. Thereafter, Kapatens will take action against Balder and demand immediate payment. Kapatens will be the sole plaintiff in any proceedings. This structure will secure that Kapatens assumes all risk and responsibility for the group claim and that the shareholder group, and any individual shareholder, avoids media exposure and does not have to bear any cost or risk.
On 11 May 2017, the annual shareholders’ meeting in Balder resolved on a dividend of 20 SEK per preference share, to be paid quarterly until the next annual shareholders’ meeting. On 25 September 2017, an extraordinary shareholders’ meeting in Balder resolved on a compulsory redemption of all preference shares with the record date 9 October 2017. On 12 October 2017, the redemption price of 350 SEK per preference share was paid to the preference shareholders. At that time, the preference shareholders had only received 5 SEK of the previously decided dividend of 20 SEK per preference share.
The compensation paid did not reflect the resolution on dividends taken by the annual shareholders’ meeting. Thus, each preference shareholder, in Kapatens’ opinion, had at the time of redemption a claim against Balder in the amount of 15 SEK per preference share. Such claim remains unsettled and is not affected by the redemption. Balder is of the opinion that no such claim exists.
In 2017, a sole preference shareholder filed a lawsuit against Balder, but Balder disputed the claim and retained a team of lawyers that successfully convinced the court that no right to compensation existed. The sole preference shareholder was not represented by legal counsel and based his lawsuit on other legal grounds than the cause of action on which Kapatens will rely. The negative outcome of that judgment will, in Kapatens’ opinion, have no effect on the outcome of this claim, but nevertheless shows that it does require considerable financial and legal resources to pursue a claim and to win against large companies.
Kapatens offers to buy your right to compensation from Balder for a purchase price corresponding to 60 percent of the amount that we succeed in collecting from Balder. You will receive payment no later than 30 days after the date on which Kapatens received payment from Balder.
It is a major financial undertaking for Kapatens to claim payment and file any action in court against Balder. The more shareholders that join our group claim, the stronger the group will be and the more likely it is that we will succeed.
You only need to click on this link to access a webpage where you insert your details and the number of redeemed shares.
There are approximately 2,500 former preference shareholders in Balder, who together owned approximately 10 million preference shares, that may also be entitled to compensation. Several preference shareholders have already registered to sell their claims to Kapatens.
Court proceedings are very costly and involve substantial financial risk. It is difficult, expensive and risky for a sole shareholder to take action against a large company. By joining our group claim, you will obtain the following benefits:
- You will receive money without engaging in any proceedings. You will receive 60 percent of any amount that we succeed in collecting from Balder, without taking any other step than to join the group claim.
- You are not exposed to any cost or risk. Kapatens will finance the legal proceedings in all court instances. Since Kapatens is the sole acting plaintiff in the proceedings, you will not bear any risk (e.g. being ordered by the court to pay defendant’s costs in case of loss).
You will not be exposed to media attention. You will not be acting as a party before the court – Kapatens will bring any action in its own name.
Please see the detailed information above regarding how many shareholders that were affected in the company where you held shares. In total, there are approx. 5,000 shareholders in Balder, Ratos, Högkullen, Tobin Properties and Victoria Park that have claims for unpaid dividends in the total amount of approx. 230 MSEK (excl. interest).
Yes, if you owned preference shares in any of the companies (Balder, Ratos, Högkullen, Tobin Properties or Victoria Park) and if such shares were redeemed by the company by the relevant date, you have the right to compensation and you may click on the link above to join the group claim. The letters we have communicated have been sent out to the shareholders that were recorded in the public share registers that were the most up-to-date at the time of the respective date of redemption. However, as historical public share registers in Sweden are only available on a quarterly basis and only contain those shareholders that own more than 500 shares (the threshold is the aggregate sum of the shares of all share classes owned by a specific shareholder), we unfortunately cannot reach out to all shareholders. We have addressed this issue with Euroclear.
Kapatens is a Swedish investment company which, inter alia, finances and organises group claims and other disputes. We provide weaker parties and groups of shareholders, lenders and other investors with access to justice, enabling such parties to enforce their rights against financially stronger parties.
We want that anyone that has been harmed shall be duly compensated. We enable shareholders to recover on their unpaid dividends which they are entitled to under Swedish law. The major part of any recovered funds will be paid to the shareholders. We keep a minor portion of the recovery for expenses to attorneys and administrative costs and to provide our investors with a return on their capital.
Kapatens is owned by its management and a number of Swedish family offices. We have a Swiss investor in our fund structure. All our investors are strong supporters of the principle of access to justice for anyone who has been wronged, which Kapatens makes possible. Since Kapatens’ business focuses on high stakes disputes, which often involve serious conflicts and resentment, we do not disclose our investors’ identities in order to avoid undue pressure from defendant parties.
Kapatens receives 40 % of any recovery from a favourable judgment or settlement. Such amount shall cover any and all lawyer and expert fees, as well as other costs of the proceedings, including any insurance premium to cover for adverse costs judgments, and administrative measures. We have already paid considerable costs for preparing the group claim. Any remaining amount will be paid to our investors. The costs associated with the group claim has no effect on the preference shareholders’ recovery, as the shareholders will receive 60 % of the payment made by the relevant company per share, irrespective of Kapatens’ costs.
We pay you 60 % of the compensation paid by the relevant company per share, following a favourable court judgment or settlement. Thus, we keep 40 % of the compensation to cover our costs and to get a return on our investment.
You sell and transfer the claim to us, and receive payment if and when we succeed on the claim. Kapatens shall make payment to you no later than 30 days after Kapatens has received payment from the company.
You do not take any risk. Kapatens bears all responsibility for the proceedings and take all costs and risk. Since you sell and transfer your claim to Kapatens, you will not be party to any proceedings. Kapatens will be the sole plaintiff (the party filing any court action). You are one of approximately 5,000 other preference shareholders who have been harmed and you will not be exposed in the media.
No. To sign the transfer notice does not imply any costs for you, irrespective of the outcome of any proceedings. If we win, we will keep part of the recovery (40 %) and pay out the majority of any recovered amount (60 %) to you.
Yes, you can. If so, you shall not sign any agreement with us. Our claim does not prevent anyone else to take action against the relevant company using their own financial means. However, for the sake of clarity, please note that you cannot be part of our group claim and at the same time claim compensation directly against the company on your own behalf. If you pursue your own claim, you will bear your own costs and also be exposed to the risk of having to pay the defendant company’s legal costs if the case is lost in court. It is only the shareholders that join our group claim that will benefit from our protection.
No, not at the moment. At a later stage, we may offer cash payment prior to any judgment or settlement. If so, it will be a general offer made to any and all shareholders in the relevant company. We do not want, and will not, take any action that could be viewed as unequal treatment of shareholders.
Yes, the organizing of group claims, acquisition of claims and financing of disputes is legal in Sweden and common practice globally. We are the first legal finance investment company established in the Nordic region.
Yes, you have a well-founded claim for compensation for unpaid dividends. It is not of any relevance whether you have been aware of your right to payment or not.
The fact that several companies have redeemed shares without paying dividends does not impact the legal analysis that they had no right to do so. Further, there are companies that have redeemed their shares in a correct manner by not deciding on dividends to the preference shares for the year during which redemption was effectuated.
Kapatens will accept further registrations. However, participation is conditioned upon the company not already having made payment as per Kapatens’ demand or having entered into a settlement before Kapatens has been able to adjust its claim against the company following new registrations. The more shareholders that join the group by assigning and transferring their claims, the stronger the pressure will be on the companies and the more likely it is that we will succeed.
If you do not find the answer to your question in the above FAQ section, please do not hesitate to send us an email at groupclaim-1@kapatens.com
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