Electrolux to consider potential private equity deal, Kepler says

Investor AB

12/03/2024 12:33

** Kepler Cheuvreux says Electrolux  ELUXb.ST  considers
significant structural changes, including potential divestments
and a private equity deal
   ** Shares in the Swedish household appliances maker rise 4% 
   ** Investor AB  INVEb.ST , which owns 17.9% in the company,
has been considering divesting the company since 2018, Kepler
says in a note, adding Electrolux might facilitate the sale by a
private equity deal to avoid political risks
   ** In May 2023, Midea  000333.SZ  approached the company for
a potential takeover, but the deal fell through due to potential
political opposition to the sale of Electrolux's U.S. business
to a Chinese buyer
    ** After Midea's bid fell through, Electrolux announced a
strategic review, considering the divestment of operations in
South Africa, Egypt or Middle East and certain brands in Europe
    ** "The most important would be to divest the
underperforming North American business, which has lost
economies of scale over the past decade and lacks a premium
brand," the broker says
    ** "We estimate that a potential offer of SEK 140 per share
would be a level that we believe could be accepted by current
shareholders and that could also create significant value for a
potential private equity bidder," Kepler adds

 (Reporting by Agnieszka Oleńska)
 ((Agnieszka.Olenska@thomsonreuters.com;))