The Wallenberg family is set to become the largest owner in the struggling steel company Stegra, Dagens industri reports citing multiple sources. Investors are providing 15 billion kronor to rescue the green steel project, with the Wallenberg sphere covering half. Lenders will release nearly 10 billion kronor in previously frozen loans.
The Wallenberg family and an investor group are stepping in as the largest owners in Stegra with a 15 billion kronor rescue package. Dagens industri reports, citing multiple sources, that the Wallenberg sphere will contribute 7-8 billion kronor. Lenders are not providing new funds but releasing nearly 10 billion kronor in loans frozen since the turn of the year.
Stegra will gain access to a total of 25 billion kronor to complete its green steel project in Boden. This exceeds the 10 billion kronor the company stated in October was needed for rising development costs. Venture capital firm Altor, which initiated talks with the Wallenberg sphere, is expected to take the next largest share.
The Wallenberg group will also assume the chairmanship position in Stegra. Final details of the deal are expected early next week, with involved parties expressing relief. "One must see this as more than an investment. With the Wallenbergs coming in, Stegra becomes part of Swedish industry's elite and will never be allowed to go bankrupt," said a person with insight.
Stegra has been discreet about its financing process, needing the entire first quarter to secure new capital. Despite prior conflicts over board seats, those issues have now been resolved. A source noted sustained belief in Stegra's business model, unlike the final stages with Northvolt.
