ABB Shareholders Approve Accelleron Spinoff -- Update
September 07 2022 - 8:00AM
Dow Jones News
By Pierre Bertrand
ABB Ltd shareholders approved Wednesday the spinoff of its
turbocharging business unit into a separately listed company by way
of a dividend in kind.
The Swiss technology company will distribute one share of
Accelleron Industries Ltd. for every 20 shares of ABB held by
shareholders. Accelleron manufactures turbochargers and large
turbocharging components for engines which enhance propulsion and
increase fuel efficiency while reducing emissions.
Accelleron's listing on the SIX Swiss index in Zurich is planned
for Oct. 3, after shareholders representing 62% of the total share
capital with a right to vote approved the measure with more than
99% of the vote.
The spinoff, set out in July, is part of ABB's effort to
streamline business operations and focus on electrification and
automation. The company said at the time the move would ensure the
business unit's full value.
Last month, ABB said Accelleron expects to achieve an
operational net income of about $150 million in 2022 and intends to
pay its first dividend of around $75 million during the first half
of next year. The turbocharging business is targeting a margin of
operational earnings before interest, taxes and amortization of
between 23% and 26% for the next four to five years.
In 2021 Accelleron booked revenue of $756 million with an
operating margin of 25%.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
September 07, 2022 07:45 ET (11:45 GMT)
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