GOTHENBURG, Sweden, Sept. 17, 2024 /PRNewswire/ -- The Board of Directors of SKF has decided to initiate a separation of its Automotive business with the objective of a separate listing on Nasdaq Stockholm through a Lex Asea distribution to its shareholders. The intention is to list the Automotive business on Nasdaq Stockholm during first half of 2026.
Given different business dynamics, end markets and success drivers for the Industrial and Automotive business segments, a separation will facilitate a clearer focus on distinct opportunities to enhance customer value, accelerate growth as well as improve efficiency and competitiveness.
"Both businesses are global leaders in their respective fields and will through a clearer focus increase customer value and leverage on their strategies as standalone companies. The Board of Directors and Management therefore believe that long-term value can be created by splitting the Group into two separate companies, benefiting customers, employees and shareholders," says Hans Stråberg, Chair of SKF Board of Directors.
A separation would increase Automotive's ability to adapt faster to transforming global automotive markets, by allowing it to make independent business decisions and investments. A more tailored, leaner Automotive business model will further strengthen its competitive advantage and capture additional profitable growth opportunities, while at the same time accelerating its profitability transformation.
"When we launched our new business strategy in February 2022, we articulated a desire to create a more autonomous Automotive business to provide strategic flexibility. I also said that we need to take bold decisions to unlock additional long-term profitable growth opportunities. Initiating a separation of the Automotive business is one of those decisions," says Rickard Gustafson, President and CEO.
A more focused Industrial company will be even better equipped to develop and execute its strategy and allocation of resources. By connecting operations more towards its industrial customers' needs, it will cater for accelerated growth, improved efficiency, increased responsiveness and enhanced end-user experiences. The SKF Group will strengthen its long-term position as a global industrial focused technology leader delivering customer value through high quality and sustainable solutions.
It is the intention to separate SKF's current Automotive business. As a reference for the full-year 2023, net sales for the Automotive segment amounted to SEK 30 billion with an adjusted operating margin of 5.6%. The corresponding figures for the Industrial segment were SEK 73 billion and 15.4%, respectively.
The Board of Directors intends to present a proposal for the distribution and listing of the Automotive business at a shareholders meeting in 2026. If the shareholders and other stakeholders approve of such a proposal, AB SKF shareholders will receive shares in the Automotive business in proportion to their existing shareholding in AB SKF. The intention is then to list the Automotive business on Nasdaq Stockholm during the first half of 2026.
The distribution of the Automotive business is foreseen to meet the requirements of Lex Asea, meaning that the receipt of the shares distributed should be exempt from Swedish tax.
Further details will be provided in due course.
A webcast for media and investors will be held on 17 September at 15:30 (CET). Access the webcast via the link or call in using the dial in details below:
Link to webcast: https://www.investis-live.com/skf/66e2a1bc26e9bc1200f9b061/paret
Sweden: +46 (0)8 5051 0031
UK / International: +44 (0)207 107 0613
Aktiebolaget SKF
(publ)
Information in this press release contains information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on 17 September 2024 at 12.00 CET.
For further information, please contact:
Press Relations: Carl Bjernstam, +46 31-337 2517; +46 722 201 893; carl.bjernstam@skf.com
Investor Relations: Sophie Arnius, +46 31-337 8072; +46 705 908 072; sophie.arnius@skf.com
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https://mb.cision.com/Main/637/4038506/3004587.pdf | 20240917 SKF initiates a separation of its Automotive business |
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