ABB Sells Unit to NKT Cables in $934 Million Deal
September 21 2016 - 5:20AM
Dow Jones News
Zurich—ABB Ltd. said Wednesday that it will sell its global
high-voltage cable system business to NKT Cables in a deal that has
a total enterprise value of €836 million ($934 million).
The deal is part of a broader strategic review of ABB's power
grids unit, the company said. ABB shares rose 0.4% in early trading
Wednesday.
Two top shareholders of ABB, Swedish activist fund Cevian
Capital and U.S.-based Artisan Partners have urged the Swiss
engineering giant to spin off its power-grids unit to raise
shareholder value and streamline operations, The Wall Street
Journal reported last week.
"The combination of our niche cable system business with the
strength of NKT Cables demonstrates our commitment to active
portfolio management, a key element of our Next Level strategy,"
ABB chief executive Ulrich Spiesshofer, in a statement. The company
said it would report on the strategic review of its power grids
division at its Capital Markets Day on Oct. 4.
NKT Cables employs about 3,200 people with production facilities
in Europe and China. It had 2015 revenue of €1.2 billion.
The transaction is expected to close in the first quarter of
2017.
Eyk Henning contributed to this article.
Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
September 21, 2016 05:05 ET (09:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
ABB (NYSE:ABB)
Historical Stock Chart
From Mar 2024 to Apr 2024
ABB (NYSE:ABB)
Historical Stock Chart
From Apr 2023 to Apr 2024
