A company belonging to the Nordecon AS group, Swencn AB, entered into a contract in August 2018 for the construction of a residential development project in the Stockholm region (announcement). Due to disputes arising during the execution of the project, Swencn AB unilaterally terminated the contract in June 2020. This was followed by prolonged legal proceedings and negotiations with the client.
As the client is a private individual whose legal protection under Swedish law is significantly stronger than that of a commercial entity, Swencn AB's position in potential court proceedings was assessed as weak. To avoid lengthy litigation and based on the recommendations of local legal advisers, Swencn AB, together with Nordecon AS, has entered into a settlement agreement with the client.
Under the settlement agreement, Swencn AB will pay the client 70.330 million Swedish krona (approximately 6.5 million euros at the current exchange rate). The settlement amount will be paid according to a long-term payment schedule and will not have a material impact on the Group's liquidity. The settlement will have a negative impact on the Group's financial results for the financial year 2026.
Nordecon (www.nordecon.com) is a group of construction companies whose core business is construction project management and general contracting in the buildings and infrastructures segment. Geographically the Group operates in Estonia, Ukraine and Sweden. The parent of the Group is Nordecon AS, a company registered and located in Tallinn, Estonia. The consolidated revenue of the Group in 2025 was 208 million euros. Currently Nordecon Group employs close 430 people. Since 18 May 2006 the company's shares have been quoted in the main list of the Nasdaq Tallinn Stock Exchange.
Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
E-mail: andri.hobemagi@nordecon.com
www.nordecon.com
