Late Monday evening, SBB decided at an extraordinary board meeting to postpone the dividend and at the same time scrap plans for a new issue of D-shares for SEK 2.6 billion.
The D-share plummets by about the same amount, far below the intended issue price.
The reason is an acutely weaker financial position after the heavily indebted real estate company received a lower credit rating from the credit rating company S&P. This means that interest expenses increase significantly. An analyst TT spoke to on Monday, who wishes to remain anonymous as the situation is so sensitive, says that it may be an increase in SBB's interest expenses by 20 percent.
"The market's reaction thereafter has made it impossible to successfully carry out the rights issue on the intended terms," SBB wrote in a press release on Monday evening after the announcement of the cancelled issue.
Others are dragged along
Now the company must instead continue to try to sell assets to afford the increased financial costs. The company has several large bond loans maturing in the near future, and lenders are not likely to be queuing.
Tuesday morning's price collapse follows Monday's steep fall when the share price fell by 20 percent.
Hear analyst Michael Johansson about what lies behind SBB's fall in the clip above.