Cavotec unveils plan to quit the NZX, boosts profit 69%

Cavotec unveils plan to quit the NZX, boosts profit 69%

By Paul McBeth

Feb. 22 (BusinessDesk) – Cavotec MSL Holdings, which posted a 69% jump in annual profit today, has proposed shareholders swap their stock for units in a Swiss-based holding company that will list in Stockholm.

The engineering group that owns MoorMasters has a head office is in Christchurch though its corporate headquarters is in Switzerland. It wants to list holding entity Cavotec SA on the Nasdaq OMX Stockholm, and will ask shareholders to back the plan at their annual meeting in April before a final vote in August. Its NZX ticker is CCC.

“The development of the CCC-share value has been impacted by the downturn in capital markets worldwide combined with a generally illiquid trading environment on the NZX,” said executive chairman Stefan Widegren in his outlook statement in the company’s annual report.

“Our ultimate goal with this process is to create a strong platform for Cavotec from which we can easily attract new capital from both Swedish and international investors and institutions,” he said.

Last year, the company said it was looking at dual-listing in Sweden, due to the poor liquidity on New Zealand’s stock exchange, something that has been an ongoing problem for the bourse operator. NZX Ltd. will be hoping the government proceeds with plans to partially float some state-owned enterprises, which would inject some $7.8 billion of new equity on to the bourse.

Cavotec’s shares were unchanged at $3.34 in trading yesterday, and have slipped 0.3% this year. Average daily volume this month has been about 14,000 shares though that was amplified by 106,000 changing hands yesterday, compared to less than 8,000 each other day.

The announcement came with Cavotec’s annual result, which showed it made a net profit of 11 million euros, or 12.5 euro cents, in the 12 months ended Dec. 31, up from 6.5 million euros, or 8.1 cents, a year earlier.

The company lifted sales 16% to 144 million euros, while its operating profit rose 37% to 12.4 million euros.

(BusinessDesk)

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