STOCKHOLM (Reuters) - Shares in real estate firm Samhallsbyggnadsbolaget i Norden (SBBb.ST) fell as much as 36% on Tuesday after the company said its chief executive, Ilija Batljan, had been detained for allegedly violating market abuse regulations.
“The company has no additional information at this stage and does not know which company or security these allegations relate to,” SBB said in a statement.
Sweden’s Economic Crime Authority confirmed the information given by SBB, but declined to give any further comment.
Reuters was not immediately able to contact Batljan or a representative for comment. SBB could not immediately be reached for further comment.
Batljan, a Social Democrat politician-turned entrepreneur, founded SBB in 2016. Its shares have since soared on the Swedish stock market, but have now more than halved after hitting a peak in February.
SBB had a real estate portfolio valued at 80.2 billion Swedish crowns ($8.13 billion) at the end of the first quarter focused on public service properties like schools and care homes.
SBB shares were down 17% at 1310 GMT.
Reporting by Stockholm Newsroom; editing by Johannes Hellstrom and Jane Merriman