Activist investor Cevian takes 5% of the shares in Swedish SKF
OSLO, Aug 26 (Reuters) – Swedish activist investor Cevian Capital said on Friday it now has a 5.1% stake in SKF ( SKFb.ST ), the world’s biggest maker of industrial bearings, arguing the company’s stock was undervalued.
SKF’s stock rose on the announcement and was trading 6.3% higher at 1125 GMT, although the value of the company has still fallen by a fifth so far this year on fears of a looming global recession.
“SKF is a Swedish industrial gem with a strong core business,” says Cevian’s co-founder Christer Gardell in a statement.
Register now for FREE unlimited access to Reuters.com
“Cevian sees significant long-term value potential in the company that is far from being reflected in the share price.”
Gardell said Cevian supported SKF’s strategy, adding that the key to unlocking the company’s potential was executing on its current plans.
Analysts said the investment could prove a catalyst for the stock.
“I think people are speculating that over time Cevian might shake things up a little bit, as they’ve done with other companies where they’re a big investor,” Berenberg analyst Joel Spungin said.
Cevian has pushed for changes at companies such as Swiss-Swedish conglomerate ABB and Irish cement maker CRH, demanding simplification of complex organizational structures and in some cases even pushing for new management.
SKF’s largest shareholder is FAM AB, a holding company owned by foundations linked to the Swedish Wallenberg family, which owns 14.6% of the shares and 28.7% of the votes.
Register now for FREE unlimited access to Reuters.com
Reporting by Agata Rybska and Terje Solsvik; Editing by Kirsten Donovan
Our standards: Thomson Reuters Trust Principles.