SKF continues the preparations for the separation of its Automotive business; initiates consent solicitation
Rhea-AI Summary
SKF (SKFRY) has announced further steps in its planned separation of its Automotive business, which was initially revealed in September 2024. The company is now initiating a consent solicitation to its noteholders regarding the planned spin-off, offering a 0.25% early voting fee for favorable votes before the deadline.
The separation aims to create a separate listing on Nasdaq Stockholm through a Lex Asea distribution to shareholders. SKF emphasizes that this strategic move would enable clearer focus on distinct opportunities, enhance customer value, and accelerate growth. The company maintains that the spin-off is not expected to negatively impact its strategy, operations, or financial conditions, and its financial structure will remain solid.
Positive
- Planned spin-off aims to enhance customer value and accelerate growth
- Company maintains strong financial structure post-separation
- 0.25% early voting fee incentive offered to noteholders
Negative
- None.
News Market Reaction – SKFRY
In the trading session that priced this news, SKFRY declined 1.87%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
As the separation process continues, SKF now launches a consent solicitation to holders of its notes, in relation to the contemplated spin-off and to confirm that it will not cause an event of default under the conditions of the notes.
SKF is seeking the consent as a matter of prudence and in order to avoid any potential uncertainty in the future. SKF does not consider that there has been an event of default under any series of the notes.
As previously communicated, SKF considers that the contemplated spin-off of its automotive business would facilitate a clearer focus on distinct opportunities to enhance customer value, accelerate growth, improve competitiveness as well as providing long-term value benefiting customers, employees and other stakeholders.
SKF does not expect the contemplated spin-off to have any negative impact on its strategy, operational or financial conditions of SKF. This implies that the contemplated spin-off would not impact the solvency of SKF and its financial structure would remain solid.
As further described in the announcement, SKF is offering a
For further information, please see the announcement in respect of the consent solicitation which will be published here: https://www.luxse.com/market-overview/market-news.
Aktiebolaget SKF
(publ)
Information in this press release contains information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on 7 February 2025 at 08:00 CET.
DISCLAIMER
Neither the Consent Solicitation Memorandum, the announcement, nor this press release constitutes an invitation to participate in the consent solicitation in any jurisdiction in which, or to any person to whom, it is unlawful to make such invitation or for there to be such participation under applicable securities laws or regulations. The distribution of the Consent Solicitation Memorandum, the announcement and this press release in certain jurisdictions may be restricted by laws or regulations.
Persons into whose possession the Consent Solicitation Memorandum, the announcement and this press release comes are required by each of Aktiebolaget SKF (publ), the Solicitation Agents, the Fiscal Agents, and the Information and Tabulation Agent to inform themselves about, and to observe, any such restrictions. None of Aktiebolaget SKF (publ), the Solicitation Agents, the Fiscal Agents or the Information and Tabulation Agent will incur any liability for its own failure or the failure of any other person or persons to comply with the provisions of any such restrictions.
Neither the Consent Solicitation Memorandum, the announcement, nor this press release is an offer of securities for sale in
In addition, the communication of the Consent Solicitation Memorandum, this press release and any other documents or materials relating to the Proposal is not being made, and such documents and/or materials have not been approved, by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 ("FSMA"). Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the
For further information, please contact:
PRESS: Carl Bjernstam, Head of Media Relations
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com
Group Treasurer: Elisabeth Mosséen,
tel: +46 31-337 6431; mobile: +46 722 156 431; e-mail: elisabeth.mosseen@skf.com
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