Atlas Copco Group proposing company split
By Andrew Snook
January 30, 2017 – Atlas Copco recently announced it is initiating work to propose a split of the Atlas Copco Group into two listed companies at its 2018 annual general meeting, Atlas Cocpo and “NewCo” (working name).
“The Board and Management believe that long-term shareholder value will be created by splitting the Group into two separate companies,” said Hans Stråberg, Chair of the Board of Directors of Atlas Copco AB. “Both businesses are global leaders in their respective fields and will benefit from a more focused management responsibility.”
The split would have NewCo focused on mining and civil engineering customers, including the Group’s current Mining and Rock Excavation Technique business area and the Construction Tools division with related service operations, which currently employs about 12,000 people.
In the proposed split, Atlas Copco would focus on industrial customers and include the Compressor Technique, Vacuum Technique and Industrial Technique business areas plus the Portable Energy division, including service, and the Specialty Rental division. This portion of Atlas Copco’s business currently employs approximately 33,000 people.
“The two businesses have different demand drivers and demand characteristics,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “A split will increase their respective abilities to add value to customers, grow the business and attract talent.”
“If the shareholders decide in favour of the proposal, the split of the Group is planned to be done through a share distribution, whereby Atlas Copco AB’s shareholders will receive shares in NewCo AB in proportion to their existing shareholding. The intention is to list NewCo AB on the Nasdaq Stockholm stock exchange in Stockholm, Sweden, in the second quarter 2018,” the company recently explained in a press release. “The distribution of NewCo AB is foreseen to meet the requirements of Lex Asea, meaning that the Swedish-based shareholders of Atlas Copco AB are taxed only on the value of the shares received when they sell them.”
For more information, visit http://www.atlascopcogroup.com/investor-relations/.
Source: Atlas Copco
About Atlas Copco
Atlas Copco is a world-leading provider of sustainable productivity solutions. The Group serves customers with innovative compressors, vacuum solutions and air treatment systems, construction and mining equipment, power tools and assembly systems. Atlas Copco develops products and services focused on productivity, energy efficiency, safety and ergonomics. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 180 countries. In 2015, Atlas Copco had revenues of BSEK 102 (BEUR 11) and more than 43 000 employees.