UPDATE 1-SBB sells 1.16% of education unit, receives $700 mln as part of loan repayment

(Adds details on the divestment in paragraphs 3,5,6)

Sept 24 (Reuters) – Swedish property group SBB on Sunday divested 1.16% of its education subsidiary EduCo to Brookfield Super-Core Infrastructure Partners for around 242 million Swedish crowns ($21.73 million) and became a minority owner.

Brookfield Super-Core Infrastructure Partners is the infrastructure partner of Canada’s Brookfield Asset Management.

SBB will hold approximately 49.84% of EduCo after the completion of the divestment, following which EduCo will be controlled by Brookfield. The transaction is expected to be completed in October this year.

SBB added that EduCo will repay part of its inter-company loan from SBB, resulting in the Stockholm-based company receiving approximately 7.8 billion Swedish crowns ($700.46 million) in cash.

SBB’s remaining loan to EduCo will be around 5.5 billion Swedish crowns.

SBB’s discussions with Brookfield to sell its remaining 51% stake in EduCo broke down in July, which at the time was a blow to the company, which was fighting for survival after its shares plunged in May on concerns over its financial position and a refinancing of billions of crowns in debt. Brookfield bought the other 49% stake from SBB in November of last year. ($1 = 11.1356 Swedish crowns) (Reporting by Rishabh Jaiswal in Bengaluru; editing by Barbara Lewis and Sharon Singleton)

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