Trelleborg rallies after $2 billion divestment

Yokohama Rubber Co

25/03/2022 08:28

** Shares in Sweden's Trelleborg  TRELb.ST  soar 20% after
the engineering firm  said it has agreed to divest Trelleborg
Wheel Systems to Yokohama Rubber Company  5101.T   urn:newsml:reuters.com:*:nFWN2VR1N1
    ** The deal value is for EUR 2.1 billion ($2.31 billion) on
a cash and debt free basis 
    ** Citi says that through the exit Trelleborg is reducing
the cyclicality of its business and can both expand its buyback
and do M&A in higher growth segments
    ** "We don't see any major dissynergies," the broker adds
    ** The company said it would launch buyback of own shares
for a maximum amount Of SEK 400 million  urn:newsml:reuters.com:*:nFWN2VR1N4
    ** The stock is on track for its best day ever, with today's
gains adding 11 billion Swedish crowns to the company's market
cap
    ** It tops the pan-European STOXX 600  .STOXX  index




($1 = 0.9077 euros)

 (Reporting by Jagoda Darlak)
 ((jagoda.darlak@tr.com))