acquired a 10% stake in Demag Cranes AG, owner of Gottwald Port Technology. The move makes Cevian the largest single shareholder in the German crane maker.
The Sweden-based equity investor has not ruled out the possibility of increasing its shareholding in the future but said it does not plan to acquire a controlling stake.
Cevian said its investment in Demag was financed solely with equity. The 10% share package was purchased through the Stock Exchange and via financial instruments.
Following a slump in order intake during last year as ports and terminal operators postponed major projects, the Düsseldorf-based crane maker implemented a significant cost-cutting program.
“The management of Demag Cranes AG responded quickly and resolutely to the economic and financial crisis, laying the foundations for strengthening the competitiveness of the company,” said Jens Tischendorf, a partner at Cevian Capital and responsible for the business in Germany. “We are convinced that the management board is following the right path.”
Welcoming the new investor, Demag Cranes CEO, Aloysius Rauen, said: “With Cevian Capital, we have gained a reliable and experienced shareholder.”
In the second quarter of the 2009-10 financial year ending 31 March 2010, Demag saw an improvement in its port technology segment with order intake up by 30% to €44m (US$53.7m) year-on-year, while the order book was down by 30% at €61m.
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