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NewCo December 2022 AS, a subsidiary of Altor Fund V, has on January 19th acquired 1.3 million shares in FLSmidth & Co. A/S (“FLSmidth”) corresponding to 2.3% of the shares outstanding. NewCo December 2022 AS has through this acquisition crossed the 5% ownership threshold and currently owns 7.2% of outstanding shares. Altor Fund V is part of the Altor family of funds (“Altor”).
The Nordic investment firm Altor has over its 20 years of operation made investments and partnered with management in more than 85 private and public companies, and is currently a minority shareholder in four publicly listed companies.
“FLSmidth is a Danish crown jewel with a very capable management team, and we are excited about the strategic direction of the company and the attractive long-term demand drivers supporting it. The global transition towards a less carbon-intensive society is paramount, and both the Mining and the Cement industries will be key to achieve this transition. Green transition and electrification rely on mined metals like copper and lithium, and significant investments in additional mining capacity and in more efficient mining solutions will be necessary to meet the global climate targets. FLSmidth, with its advanced solutions and global customer relations, will be a key enabler of this in years to come. Similarly, cement production currently accounts for 7-8% of global CO2 emissions and we believe FLSmidth will play a leading role in decarbonizing the industry through innovative products and processes.” says Daniel Reimann, Principal at Altor.
“The company’s strong momentum is a testament to the skill of the management team, and we see attractive potential for further long-term margin expansion through the ongoing transformation initiatives and integration of TK Mining. With our heritage of long-term investing and partnering with management teams in industrial companies, FLSmidth is a perfect match for us” says Harald Mix, Partner and co-founder at Altor. “Investing in public minorities is an important part of our strategy, as exemplified by Sbanken, Eltek, XXL, Spectrum, and Cermaq, and the evident decarbonization opportunities for FLSmidth fit well with our increased investment into the green transition agenda, ranging from the green steel producer, H2 Green Steel, over the wind farm developer, OX2, to electrification-enablers Svea Solar, Tibber, and Vianode. FLSmidth is a strong platform with significant further value creation opportunities, and we look forward to supporting the company as an active owner.“
Combined with NewCo December 2022 AS’ existing 2,853,675 shares in FLSmidth, the newly acquired 1,321,676 shares bring NewCo December 2022 AS’ total ownership in FLSmidth to 4,175,351 shares (equivalent to 7.2% of the outstanding share capital).
The purchase has not included an offer, whether directly or indirectly, in the United States, Canada, Japan, South Africa, Hong Kong or Australia, unless otherwise indicated, or in any other jurisdiction where such offer pursuant to legislation and regulations in such relevant jurisdictions would be prohibited by applicable law. This announcement is intended for the sole purpose of providing information. Persons needing advice should consult an independent financial adviser. This announcement does not constitute an investment recommendation.