Sources: Swedish dynasty set to become Stegra's largest shareholder

According to multiple sources cited by Swedish business daily Di, the investment collective of Sweden's Wallenberg family – the country's most powerful industrial dynasty – is set to invest between €630 and €720 million into Stegra, the green steel company planning to produce fossil-free steel at industrial scale in Boden, in northern Sweden.

According to the sources, only formalities remain before the deal is finalised.

A €2.25 billion lifeline

Stegra – formerly known as H2 Green Steel and one of Europe's most high-profile green industrialisation projects – is targeting a total raise of approximately €1.35 billion in fresh equity. The transaction would make the Wallenberg sphere Stegra's largest shareholder.

Private equity firm Altor, which according to Di's sources initiated contact with the Wallenberg sphere, is expected to take the second-largest portion and retain its current position on the shareholder register.

Beyond the new equity, Stegra's lenders are set to release approximately €900 million in loans that have been frozen since the turn of the year. In total, the company would gain access to roughly €2.25 billion to complete its green steel facility in Boden.

Working on the funding

When Impact Loop reached Stegra's Head of Communication Karin Hallstan, she neither confirmed nor denied the details, writing: "We are working on the funding and when we are ready to communicate, we will communicate." (Impact Loop's translation from Swedish), referencing the company's overall funding.

The Wallenberg sphere is also expected to assume the chairmanship of the company, according to Di's sources. The final elements of the package are understood to be concluded early next week.