Investor Raises Dividend as 4Q NAV/Share Rises 12% on Year
January 29 2013 - 5:13AM
Dow Jones News
Investor AB (INVE-B.SK), the Swedish investment company, Tuesday
posted a 12% on-year rise in net asset value per share and raised
its dividend, adding that it aims to return to its leverage target
of 5%-10% following the closing of the Gambro transaction later
this year.
MAIN FACTS:
-NAV per share rose to SEK230 as of Dec. 31, 2012, from SEK205
at the end of 4Q, 2011. Analysts saw NAV/share at SEK225.
-The company proposed a dividend of SEK7 per share, up from SEK6
last year, and said it aims to pay a steadily rising dividend over
time.
-The sale of Swedish medical-equipment maker Gambro to Baxter
International Inc. (BAX) is expected to be finalized late in the
second quarter of 2013. The sale will generate proceeds of SEK10.5
billion to Investor.
-After the closing of the Gambro transaction, Investor said
it'll return to its leverage target of 5%-10% in order to de-lever
its subsidiaries and make further investments.
-In 4Q, the company invested SEK500 million in equity financing
in unlisted subsidiary Aleris but made no investments or
divestments in listed holdings.
-It said Aleris has suffered from operating challenges in
healthcare Sweden and difficult market conditions in Denmark and
that it will take some time to fully implement its turnaround plan,
including de-leveraging.
-4Q net profit fell to SEK10.84 billion from SEK12.27 billion,
due to value changes.
-4Q profit before tax fell to SEK10.27 billion from SEK12.34
billion.
-On the economic situation, CEO Borje Ekholm said he expects
Europe to continue to muddle through, with another few years to
full recovery, and that he remains concerned about political
disagreements over how to solve the U.S. debt ceiling and spending
cuts.
-Mr. Ekholm said it seems the U.S. economy, including the
housing market, is gaining momentum, but markets should expect
slower growth in China near term as uncertainty prevails.
-The company reiterated that it's partner-owned investments will
be exited, listed or become subsidiaries.
-Shares closed Monday at SEK177.30.
-Write to Anna Molin at anna.molin@dowjones.com; Twitter:
@DowJonesNordics
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