This press release includes forward-looking information and statements which are based on current expectations, estimates and projections about the factors that may affect our future performance, including the economic conditions of the regions and industries that are major markets for ABB. Important notice about forward-looking information With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 110,000 talented employees in over 100 countries.
ABB POWER GRIDS FINANCE LTD SOFTWARE
By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. ABB has a pre-defined option to exit the retained 19.9 percent shareholding three years after closing.ĪBB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future.
The transaction terms with Hitachi remain as announced on December 17, 2018, with an enterprise value of $11 billion for 100 percent of the business. Hitachi ABB Power Grids will be led by Claudio Facchin as CEO. The Board of Directors of the joint venture includes Timo Ihamuotila, Chief Financial Officer of ABB, and Frank Duggan, former member of ABB’s Executive Committee.
The joint venture is a global leader in power systems, with annualized revenues of approximately $10 billion and roughly 36,000 employees, serving customers in over 90 countries. We will do this by evolving our decentralized business model, strengthening our performance management culture and driving active portfolio management,” said Björn Rosengren, ABB CEO.ĪBB is a long-term partner of Hitachi and will initially retain a 19.9 percent equity stake in the joint venture that will operate as Hitachi ABB Power Grids and be headquartered in Switzerland. Leveraging our technology leadership and passion for innovation, we will now focus on creating superior value for our customers, employees and shareholders. “With the divestment, ABB is well positioned for the future with a strong focus on industrial customers. ABB aims to maintain its “single A” credit rating. At the AGM, ABB intends to request shareholder approval to cancel the shares purchased through this program and to announce further details on its ongoing capital structure optimization program. The share buyback program will be executed on a second trading line on the SIX Swiss Exchange and is planned to run until the company’s Annual General Meeting (AGM) on March 25, 2021. This represents about 180 million shares, when excluding treasury shares. ABB initially intends to launch a share buyback program of 10 percent of the company’s issued share capital shortly after the release of its second quarter 2020 financial results. Our goal is to execute this in an efficient and responsible way, taking account of the prevailing circumstances.”Ĭonsistent with ABB’s capital structure optimization program, ABB plans to return to shareholders net cash proceeds of $7.6–7.8 billion from the sale of Power Grids. “ABB remains committed to using net cash proceeds from the transaction for a share buyback program.
We believe Hitachi is the best owner for Power Grids and its next stage of development, building on the solid foundation achieved under ABB’s previous ownership,” said Peter Voser, Chairman of the Board of Directors of ABB. Since announcing our intention to divest Power Grids to Hitachi, ABB has made significant progress in becoming a more customer-focused and simplified organization. “Today’s announcement marks an important turning point in the history of ABB. The divestment allows ABB to focus on key market trends and customer needs such as the electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity.
0 kommentar(er)
