Activist fund Cevian nearly halves stake in Thyssenkrupp

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  • Cevian cuts stake in Thyssenkrupp to 7.9% from 15%
  • Turnaround is bearing fruit – Cevian
  • Cevian to stay one among Thyssenkrupp’s high buyers

FRANKFURT, Nov 23 (Reuters) – Swedish activist fund Cevian has nearly halved its stake in Thyssenkrupp (TKAG.DE), it mentioned on Tuesday, paring again its holding at a loss after a far-reaching overhaul of the German conglomerate it demanded for years got here too late.

Cevian mentioned it had lowered its shareholding to 7.9% from round 15% beforehand, not disclosing at what worth it had bought the roughly 43 million shares in the steel-to-submarines group.

Shares in Thyssenkrupp fell 6% following the news.

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“Cevian remains one of Thyssenkrupp’s largest investors and will continue to support the company and management in becoming more successful and in creating more value for all stakeholders,” the investor mentioned in response to questions.

The providing, run by UBS, launched with worth steerage of 10.20-11.29 euros per share, ensuing in proceeds of 439 million to 485 million euros ($493 million-$545 million), Refinitiv news service IFR mentioned.

Cevian disclosed investments in Thyssenkrupp in 2013 and 2014. While it didn’t disclose at what worth, shares in the German conglomerate traded round 17-19 euros on the time, indicating the fund is taking a loss in the present placement.

The divestment highlights Cevian’s sobering observe report in Germany, which additionally features a 26.67% stake in Bilfinger (GBFG.DE), shares of which have fallen too in worth for the reason that fund first disclosed a stake in 2011.

Meantime, different holdings, together with these in Switzerland’s ABB (ABBN.S), which makes industrial robots and drives, and Swedish telecoms firm Ericsson (ERICb.ST), have confirmed to be extra profitable.

The sale of Thyssenkrupp shares comes after a 30% share worth rally to this point this yr and displays the corporate’s operational enhancements following years of losses, together with plans to checklist its hydrogen division in a share sale subsequent yr. learn extra

“The most recent results presented by Thyssenkrupp and the share price rise show that the turnaround is bearing fruit,” Cevian mentioned.

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Reporting by Christoph Steitz; Editing by Cynthia Osterman, Louise Heavens and Emelia Sithole-Matarise

Thyssenkrupp's logo is seen outside the elevator test tower in Rottweil, Germany, January 21, 2020.  REUTERS/Michaela Rehle/File Photo

The logo of German steelmaker ThyssenKrupp AG is seen on an escalator at Frankfurt's main railways station in Frankfurt, Germany, January 23, 2020. REUTERS/Wolfgang Rattay

A crane lifts a steel coil at the storage and distribution facility of the steel plant of German steel maker ThyssenKrupp in Duisburg, Germany, January 30, 2020.   REUTERS/Wolfgang Rattay/File Photo

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