Cavotec shareholders to vote on shifting to Swedish bourse next month
Aug. 10 (BusinessDesk) – Cavotec MSL, which owns Christchurch-based MoorMaster, will ask shareholders to swap their stock for units in a Swiss-based holding company next month.
The special meeting is scheduled for Sept. 1 in Christchurch, and will fulfil the global engineering group’s ambition to move to the Nasdaq OMX Stockholm, a more liquid bourse. Executive chairman Stefan Widegren said the shift will only change the structure of the holding company, and Cavotec will continue to operate as is.
“The proposed restructuring is in the best interests of Cavotec MSL shareholders and there are a number of advantages,” the key ones being the ease to raise new capital and improved liquidity in share trading, Widegren told shareholders in a letter.
Cavotec unveiled its plans to quit the NZX in February after criticising the illiquid trading on New Zealand’s stock exchange, which it said had been an ongoing problem.
The stock will delist from the NZX on Sept. 27, and the new shares will list in Stockholm on Oct. 19, according to Cavotec’s timetable.
The company hasn’t decided whether it will raise new capital once the shift to the Swedish exchange is complete, though major shareholders who own about half the stock aren’t expected to participate, and it wouldn’t be open to New Zealand investors.
The company will lobby for the Swedish bourse to be added as a ‘recognised exchange’ to allow New Zealanders to participate in future offers.
The engineering company expects the restructure will cost it about $2 million.
The Financial Markets Authority has granted Cavotec an exemption from preparing a local prospectus in respect to the restructuring.
The shares were unchanged at $2.66 in trading yesterday, and have dropped almost 21% this year.
Yesterday, Cavotec said it renegotiated a 50 million euro loan with a syndicate of European banks, extending the maturity date to 2016 and at a better price.