Ferronordic soars on Russian business sale

Ferronordic AB

23/12/2022 12:45

** Ferronordic  FNMA.ST  shares soar about 53% after the
Swedish construction equipment company said it had divested its
Russian business for SEK 1.32 billion  ($126.31 million)
    ** Brokerage ABG Sundal Collier said it already assumed no
value on Russia for 2023 in its analysis, but the divestiture
now adds a cash effect per share of SEK 75 on top of Ferronordic
being entitled to all earnings and cash flows in 2022 (minus one
week)
    ** ABG and Nordea point out that the cash the Russian
business was sold for is now outside of Russia, hence free to
use 
    ** Both brokers say that the cash might be used for
dividends or for investments in expansion in new markets 
    ** Share on track for its best day ever
($1 = 10.4508 Swedish crowns)
 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))