Latest news with #divestment
Yahoo
a day ago
- Business
- Yahoo
FLSmidth signs agreement to divest its Cement business to become a pure-play supplier of technology and services to the mining industry
COMPANY ANNOUNCEMENT NO. 10-2025 FLSmidth & Co. A/S20 June 2025 Copenhagen, Denmark Today, FLSmidth announces that it has entered into an agreement to divest its Cement business to an affiliate of Pacific Avenue Capital Partners, a global private equity firm focused on carve-outs and other complex transactions, for a total initial consideration of EUR 75 million, corresponding to approximately DKK 550 million (Enterprise Value), plus a conditional deferred cash consideration of up to EUR 75 million, corresponding to approximately DKK 550 million. In early 2023, FLSmidth embarked on a strategic journey with the announcement of new pure-play strategies for its Mining and Cement businesses (ref. Company Announcement no. 2-2023). Since then, FLSmidth has simplified and rightsized both businesses to further strengthen their respective market positions, with a strategic focus on the core technologies and services required in the mining and cement industries. This has resulted in a significantly improved and more stable commercial and financial performance for both businesses. On 29 January 2024 (ref. Company Announcement no. 1-2024), FLSmidth announced its intention to explore the available divestment options for its Cement business, with the objectives of enabling the Cement business to maximise its full potential as well as to further strengthen our Mining business' market-leading position as a full flowsheet technology and service provider to the global mining industry. Chair of the Board of Directors of FLSmidth, Mads Nipper, comments: 'I am incredibly proud of what our Cement business has achieved in its more than 140-year long history with FLSmidth. We firmly believe that this divestment represents a pivotal step in unlocking the full potential for both our Mining and Cement businesses. Our Cement business is now well positioned for future success, with the flexibility to pursue its strategic ambitions and create exciting new opportunities for its employees to innovate and grow.' CEO of FLSmidth, Mikko Keto, comments: 'The divestment allows us to sharpen our focus on our core Mining business, positioning FLSmidth as a pure-play leader in the mining industry. With a clear and focused Mining strategy, we are confident that we are well positioned to drive long-term value for our customers, shareholders and other stakeholders and enhance our competitive position.' Jason Leach, Partner and Investment Committee Member at Pacific Avenue Capital Partners, comments: 'We are excited to acquire FLSmidth Cement, a global leader providing mission critical equipment and aftermarket solutions in the cement sector. The business has a rich history and strong brands including Fuller, Pfister, and Ventomatic. We believe that cement will continue to play a crucial role in global economic development, and that FLSmidth Cement's product innovation will play an important role in the decarbonisation of the industry'. Chris Sznewajs, Founder and Managing Partner, at Pacific Avenue Capital Partners, comments: 'We are honoured to be the trusted partner for FLSmidth on this highly complex transaction. We strive to be the buyer of choice for corporate sellers, with the ability to seamlessly complete cross-border transactions. The Cement division is an excellent fit within our portfolio given our focus on acquiring market leading companies. We are impressed with the Company's ability to deliver innovative, mission-critical solutions to its longstanding customers, and look forward to providing the necessary resources to support continued growth and value creation in partnership with management.' The transaction includes all related employees, assets, intellectual property and technology. Certain legacy contracts and the Air Pollution Control (APC) asset will be retained by FLSmidth with immaterial impact on the continuing Mining business. The transaction is expected to close during the second half 2025, subject to customary closing conditions, including regulatory approval from the relevant implications and outlookThe net cash proceeds from the divestment are subject to final adjustments, debt-like items and transaction costs. It is expected that after these adjustments the result is a limited net cash gain from the transaction. Further, the transaction includes a deferred cash consideration of up to EUR 75 million, or approximately DKK 550 million, which is conditional upon the achievement of certain undisclosed objectives. As a consequence of the transaction, FLSmidth Cement will be classified as held-for-sale and discontinued operations in the Q2 2025 Interim Financial Report. As a result of the transaction, a fair value adjustment of asset and liabilities will result in an impairment charge of approximately DKK 700 million with no cash impact, which will be accounted for in the profit/(loss) from discontinued operations in the Q2 2025 Interim Financial Report. FLSmidth's financial guidance for the full year 2025 does not include discontinued operations and will thus be adjusted to only reflect the financial outlook for the Mining business. The financial guidance for the full year 2025 for the Mining business is unchanged (ref. Company Announcement no. 8-2025). FLSmidth thus expects revenue for the full year 2025 of DKK ~15.0 billion and an Adjusted EBITA margin in the range of 14.0% to 14.5%. The Adjusted EBITA margin excludes transformation and separation costs of around DKK 200m for the full year 2025. In addition, and as a consequence of the transaction, the long-term financial target for FLSmidth Cement of an EBITA margin of ~8% for the full year 2026 is withdrawn. The long-term financial target for the Mining business of an EBITA margin of 13-15% for the full year 2026 remains unchanged (ref. Company Announcement no. 2-2023). Further impact of the transactions will be communicated in connection with the release of FLSmidth's Q2 2025 Interim Financial Report on 20 August 2025. Until closing of the transactions, FLSmidth Cement will continue to execute on its GREEN'26 strategy. Further, during the period to closing of the transactions and for a limited time thereafter, FLSmidth will continue to provide support and services to FLSmidth call On 20 June 2025 at 13.30 CEST, Mr. Mikko Keto (CEO) and Mr. Roland M. Andersen (CFO) will host a conference call to comment on this announcement. The presentation will be followed by a short Q&A session. The presentation will be held in English. The presentation can be followed live or as a replay here. If you wish to ask questions or just listen to the presentation via telephone, please register here. After registration, you will receive phone numbers, pin codes and a calendar invite. Please note that you will receive two codes (a pass code and a PIN code), both of which are needed when dialling into the webcast. The presentation slides will be made available shortly after the conference call has ended at Investors RelationsAndreas Holkjær, +45 24 85 03 84, andh@ Denholt, +45 21 69 66 57, jli@ MediaJannick Denholt, +45 21 69 66 57, jli@ FLSmidth FLSmidth is a full flowsheet technology and service supplier to the global mining industry. We enable our customers to improve performance, lower operating costs and reduce environmental impact. MissionZero is our sustainability ambition towards zero emissions in mining by 2030. We work within fully validated Science-Based Targets, have a clear commitment to improving the sustainability performance of the global mining industry and aim to become carbon neutral in our own operations by 2030. Pacific Avenue Capital Partners Pacific Avenue Capital Partners is a Los Angeles-headquartered private equity firm focused on corporate divestitures and other complex situations in the middle market. Pacific Avenue has extensive M&A and operations experience, allowing the firm to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. Pacific Avenue takes a collaborative approach in partnering with strong management teams to drive lasting and strategic change while assisting businesses in reaching their full potential. Pacific Avenue has more than USD 2.1 billion Assets Under Management (AUM) as of 31 March 2025. For more information, please visit Attachment FLSmidth Company Announcement no. 10-2025Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
FLSmidth announces share buy-back programme of up to DKK 1.4 billion
COMPANY ANNOUNCEMENT NO. 11-2025 FLSmidth & Co. A/S 20 June 2025 Copenhagen, Denmark FLSmidth & Co. A/S ('FLSmidth') today announces a share buy-back programme of up to DKK 1.4 billion to be completed before the next Annual General Meeting, which is expected to be held on 24 March 2026. This marks the company's first share buy-back programme since company's decision to initiate a share buy-back programme is supported by a significantly stronger and more stable financial performance (ref. Company Announcement no. 8-2025). Through strategic portfolio optimisation, our order backlog has over the past years undergone a material de-risking, with a shift toward more resilient, higher-margin technology and service offerings and reduced exposure to volatile or non-strategic projects. The decision is furthermore supported by the recently announced divestments of the Cement business (ref. Company Announcement no. 10-2025) and corporate headquarters in Valby, Copenhagen (ref. Company Announcement no. 9-2025). While pursuing value-accretive investments remains an important strategic focus point for FLSmidth, the Board of Directors continues to prudently balance additional investments in growth with returning value to shareholders. Given the substantial headroom to the company's targeted leverage ratio (ref. Company Announcement no. 8-2025), the Board of Directors sees an opportunity to return capital to the company's shareholders while still maintaining the ambition to pursue attractive growth opportunities. The share buy-back programme is carried out with the objective of adjusting the capital structure of FLSmidth and to meet obligations arising from share-based incentive programmes. Accordingly, any shares repurchased under the share buy-back programme that are not intended to cover obligations related to the company's share-based incentive programmes are ultimately intended to be proposed for cancellation at a General Meeting following the completion of the share buy-back share buy-back programme is initiated pursuant to the authorisation granted to the Board of Directors at the Annual General Meeting on 2 April 2025, allowing the company in the period until the next Annual General Meeting to be held in 2026 to acquire its own shares up to an aggregate nominal amount corresponding to 10 percent of the company's share capital. The consideration must according to the authorisation not deviate by more than 10% from the official price quoted on Nasdaq Copenhagen at the time of acquisition. Prior to the commencement of the share buy-back programme, FLSmidth held a total of 567,002 shares, corresponding to 0.98 percent of the company's share capital, as treasury shares. The share buy-back programme will be executed in accordance with Article 5 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse (MAR) (as amended) and the Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 (the 'Safe Harbour Regulation'). FLSmidth has appointed BNP Paribas to manage the programme. The manager will make all trading decisions independently of and without involving of the share buy-back programmeThe share buy-back programme commences on Wednesday 25 June 2025 and will end no later than Friday 20 March 2026. Under the share buy-back programme, FLSmidth may repurchase shares up to a maximum amount of DKK 1.4 billion, and no more than 4,600,000 shares, corresponding to approximately 8 percent of the share capital of the company. The shares bought back on each trading day may not exceed 25 percent of the average daily trading volume over the 20 trading days preceding the date of purchase. Shares acquired under the share buy-back programme may not be bought at a price exceeding the higher of (i) the share price of the last independent transaction, and (ii) the highest independent bid on the shares on the trading venue where the transaction is executed. Further, shares may not be bought at a price deviating by more than 10% from the official price quoted on Nasdaq Copenhagen at the time of acquisition. FLSmidth will be entitled to suspend the share buy-back programme at any time. Should the share buy-back programme be suspended, FLSmidth will announce this in a Company Announcement and the manager will stop buying back shares in the market. In accordance with the Safe Harbour Regulation, FLSmidth will as a minimum for every 7th trading day issue an announcement in respect of transactions made under the share buy-back programme. Contacts: Investor RelationsAndreas Holkjær, +45 24 85 03 84, andh@ Denholt, +45 21 69 66 57, jli@ MediaJannick Denholt, +45 21 69 66 57, jli@ FLSmidth FLSmidth is a full flowsheet technology and service supplier to the global mining industry. We enable our customers to improve performance, lower operating costs and reduce environmental impact. MissionZero is our sustainability ambition towards zero emissions in mining by 2030. We work within fully validated Science-Based Targets, have a clear commitment to improving the sustainability performance of the global mining industry and aim to become carbon neutral in our own operations by 2030. Attachment FLSmidth Company Announcement no. 11-2025Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Why Plains All American Pipeline Stock Was a Winner on Wednesday
It announced a deal to hive off its Canadian natural gas liquids assets. It will be paid nearly $3.8 billion for these assets. 10 stocks we like better than Plains All American Pipeline › Plains All American Pipeline (NASDAQ: PAA) stock was the pipeline to increased gains for investors on Wednesday. They traded the shares up by nearly 4% on news of an important divestment, and that rate easily beat the essentially flat-lining S&P 500 index. After market close on Tuesday, Plains and its majority owner, Plains GP Holdings (NASDAQ: PAGP), disclosed that they had finalized agreements to sell "substantially all" of their natural gas liquids (NGL) business. The acquirer is a Canadian peer company, Keyera, and the deal is to be effected in cash. The price is roughly 5.15 billion Canadian dollars ($3.79 billion). The sale is expected to close in the first quarter of 2026, subject to the applicable regulatory approvals and closing conditions. Plains added that, accounting for a potential one-time "special distribution" estimated at $0.35 per unit to both Plains common unit holders and Plains GP shareholders, it will reap total proceeds of around $3 billion from the divestment. The special distribution payment is subject to approval by Plains's board of directors. Following the sale, Keyera will own Plains' Canadian NGL assets, but Plains will retain those in its native U.S. The latter company's crude oil assets in Canada are not part of the deal. In its press release on the deal, Plains quoted CEO Willie Chiang as saying that it's "a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market." Judging by their collective reaction, Plains investors agree with this assessment. It will provide the company with gobs of capital while slimming its operational structure and allowing it to concentrate more on the crude oil segment. Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Keyera. The Motley Fool has a disclosure policy. Why Plains All American Pipeline Stock Was a Winner on Wednesday was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
3 days ago
- Business
- Globe and Mail
Why Plains All American Pipeline Stock Was a Winner on Wednesday
Plains All American Pipeline (NASDAQ: PAA) stock was the pipeline to increased gains for investors on Wednesday. They traded the shares up by nearly 4% on news of an important divestment, and that rate easily beat the essentially flat-lining S&P 500 index. Selling the Canadian NGL business After market close on Tuesday, Plains and its majority owner, Plains GP Holdings (NASDAQ: PAGP), disclosed that they had finalized agreements to sell "substantially all" of their natural gas liquids (NGL) business. The acquirer is a Canadian peer company, Keyera, and the deal is to be effected in cash. The price is roughly 5.15 billion Canadian dollars ($3.79 billion). The sale is expected to close in the first quarter of 2026, subject to the applicable regulatory approvals and closing conditions. Plains added that, accounting for a potential one-time "special distribution" estimated at $0.35 per unit to both Plains common unit holders and Plains GP shareholders, it will reap total proceeds of around $3 billion from the divestment. The special distribution payment is subject to approval by Plains's board of directors. Following the sale, Keyera will own Plains' Canadian NGL assets, but Plains will retain those in its native U.S. The latter company's crude oil assets in Canada are not part of the deal. A win-win, says the seller In its press release on the deal, Plains quoted CEO Willie Chiang as saying that it's "a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market." Judging by their collective reaction, Plains investors agree with this assessment. It will provide the company with gobs of capital while slimming its operational structure and allowing it to concentrate more on the crude oil segment. Should you invest $1,000 in Plains All American Pipeline right now? Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor 's total average return is992% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
South China Morning Post
4 days ago
- Business
- South China Morning Post
Trump suggests he'll extend deadline for China's ByteDance to sell TikTok
US President Donald Trump suggested on Tuesday that he was likely to extend a deadline for TikTok's Chinese owner to divest the popular video-sharing app. Advertisement Trump had signed an order in early April to keep TikTok running for another 75 days after a potential deal to sell the app to American owners was put on ice. 'Probably yeah, yeah,' he responded when asked by reporters on Air Force One whether the deadline would be extended again. Trump also said he thinks Xi would 'ultimately approve' a deal to divest TikTok's business in the United States. He indicated in an interview last month with NBC that he would be open to pushing back the deadline again. 01:03 TikTok is back online as Donald Trump vows executive order to temporarily block ban TikTok is back online as Donald Trump vows executive order to temporarily block ban If announced, it would be the third time Trump has extended the deadline.
