Activist investor Cevian ups stake in Baloise to 9.4% (updated)
09/09/2024 06:21
(Adds comment from Baloise, further details)
ZURICH, Sept 9 (Reuters) - Activist investor Cevian
Capital has increased its stake in Baloise Holding BALN.S , it
said on Monday, increasing its ability to force changes at the
Swiss insurer.
Cevian now holds around 9.4% in Baloise, the biggest
investor in the company.
The investment is an increase from the 3.12% stake held by
Cevian in Baloise revealed earlier this year. According to Swiss
stock market disclosures, the stake was increased to 5.11% by
June.
"Baloise has the opportunity to become a top-performing
Swiss insurer," said Robert Schuchna, a partner at Cevian. "We
believe there is significant value potential in the company."
Cevian, which has offices in Stockholm, London and near
Zurich, previously invested in Swiss engineering group ABB
ABBN.S and last year reported a position in UBS UBSG.S ,
saying it wanted to double the value of its stake.
It has so far not revealed its plans for Baloise.
The investor is pressing for a strategic overhaul of the
company, said The Financial Times, which first reported the
increased stake.
Cevian wants Baloise's management to refocus the group
on countries where it is strongest and has a high market share,
and direct more of its cash generation to shareholder returns
and investing in its domestic market, the newspaper said, citing
people familiar with its thinking.
The increased stake comes after Baloise shareholders voted
in April to scrap a 2% cap on voting rights, which had
previously limited their influence on the company's management.
Baloise has endured a tough few years, with the Basel
company's share price trailing rival insurers while investors
have raised concerns the performance of its businesses outside
its Swiss home market.
Over the last two years, the company's stock has struggled,
underperforming its insurance peers .SXIP by nearly 15%.
"We are looking forward to September 12, when we will
explain Baloise's strategic direction at our investor update," a
Baloise spokesman said.
The company is due to publish its half-year results and give
an investor update on that day, where it is expected to unveil
new mid-term targets.
(Reporting by Oliver Hirt and John Revill, additional reporting
by Gnaneshwar Rajan in Bengaluru;; editing by Diane Craft and
Kim Coghill)
((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))