Consilium agrees to sell bulk of business, shares soar (updated)
23/12/2019 09:35
* Nordic Capital to buy Marine & Safety division
* Division in 2018 accounted for 95% of sales
* Majority owner backs the deal
* Eyes extra dividend
(Adds detail, background, updates shares)
STOCKHOLM, Dec 23 (Reuters) - Sweden's Consilium CONSb.ST
has agreed to sell its biggest division, Marine & Safety, for 3
billion crowns ($318 million), news that sent its shares
tripling in value on Monday to record highs.
The maker of fire and gas detection and navigation and
emission monitoring systems for ships, properties,
transportation and the oil and gas industry said it had agreed
to sell the division to private equity firm Nordic Capital.
Its shares were up 196% at 0906 GMT.
"The proposed transaction enables the freeing up of
considerable worth for Consilium's shareholders, and allows
Consilium to focus on growth within remaining businesses," the
company said in a statement on Saturday.
Consilium said it expects a capital gain of around 1.55
billion crowns or 132 crowns per share from the sale of the
division, which last year had a turnover of 1.35 billion crowns
- 95% of group turnover.
The board plans to use the proceeds to invest in remaining
operations and to pay back loans, and will also propose an extra
dividend, Consilium said.
Platanen Holding, which controls 72% of votes in Consilium,
has undertaken to vote in favour of the deal at an extraordinary
shareholder meeting and the deal is expected to be finalised in
March or April 2020, it said.
Consilium, which has sold or closed down segments in recent
years to streamline its business, has this year been looking
into strategic alternatives for its remaining operations.
($1 = 9.4253 Swedish crowns)
(Reporting by Anna Ringstrom; editing by Jason Neely)
((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters
Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))