Georg Fischer soars as investors welcome machining solutions sale
30/10/2024 10:03
(Updates shares, adds analyst comments in bullets 2-4)
** Shares in Swiss industrial company Georg Fischer GF.S
surge 13.3% after it announced the sale of its machining
solutions business to United Grinding Group
** "The market cap of Georg Fischer went almost as much up
as the proceeds from the sale of this division," ZKB analyst
Walter Bamert notes
** The stock is up primarily due to its decision to sell off
the non-core machines divisions and its plans to sell casting
solutions to focus more on its piping business, Bamert says
** "This is exactly the wish of the investors and why they
are so positive also on the share price," Bamert adds
** The divestment deal, valued at CHF 630-650 million
($727-750 million), allows Georg Fischer to exit a volatile,
cyclical business, Vontobel writes
** Georg Fischer is set for its best day in 16 years if the
gains hold, and is at the top of the Swiss mid-cap index .SMIM
($1 = 0.8666 Swiss francs)
(Reporting by Elizaveta Gladun)
((elizaveta.gladun@thomsonreuters.com))