Cevian Capital's Activist Approach to Corporate Change

Cevian Capital's Activist Approach to Corporate Change is all about making a lasting impact. They've been successful in driving change through their shareholder activism, with a focus on improving corporate governance and long-term value creation.

Cevian Capital has a history of taking a long-term view, often holding onto their investments for several years. They've also been known to work closely with company management to implement changes.

One notable example of their success is their involvement with Swedish retailer Hennes & Mauritz, where they helped implement a new leadership structure and improve financial performance. This experience highlights their ability to drive meaningful change.

By taking a thoughtful and collaborative approach, Cevian Capital has been able to achieve significant results in their activist efforts.

On a similar theme: Elliott Management Activist

Cevian Capital was founded in 1996 by Christer Gardell and Lars Förberg. They were both co-founders and managing partners of the company.

Christer Gardell graduated from the Stockholm School of Economics in 1984 and later worked as a management consultant at McKinsey & Company. He was also the CEO of AB Custos from 1996 to 2001.

Lars Förberg also graduated from the Stockholm School of Economics and worked alongside Gardell at AB Custos as Chief Investment Officer from 1997 to 2001. He is currently based in Zürich.

Christer Gardell and Lars Förberg co-founded Cevian in 1996. They both graduated from the Stockholm School of Economics, with Gardell graduating in 1984 and Förberg's graduation year is not specified.

Gardell worked as a management consultant at McKinsey & Company before becoming CEO of AB Custos from 1996 to 2001. Förberg also worked with Gardell at AB Custos from 1997 to 2001 as Chief Investment Officer.

Lars Förberg is based in Zürich.

Cevian Capital announced a significant shareholding in Wolseley plc on June 24, 2010.

The Cevian Capital II Funds held 14,690,088 shares in Wolseley, which corresponds to 5.2% of the company's voting rights.

Marcus Alexanderson, a Partner at Cevian Capital, expressed confidence in Wolseley's strong businesses and attractive industry.

He stated that Wolseley has a strong set of businesses in an attractive industry, and Cevian Capital believes there is significant value potential in the company.

Discover more: Cevian Ubs

Cevian Capital has a history of increasing its shareholdings in various companies, and one notable example is its stake in Old Mutual.

In June 2009, Cevian Capital II disclosed a shareholding in Old Mutual corresponding to 4.1% of voting rights. This is a significant investment, but it's worth noting that Cevian Capital II later increased its shareholding in Old Mutual to 5.01% of the company's voting rights.

Cevian Capital II's increased shareholding in Old Mutual is a testament to the firm's confidence in the company's potential. This confidence was likely fueled by the company's strong performance and growth prospects.

Here's a summary of Cevian Capital II's shareholdings in Old Mutual over time:

By increasing its shareholding in Old Mutual, Cevian Capital II demonstrated its commitment to supporting the company's growth and success. This is a common strategy used by Cevian Capital in its investments, as seen in its other notable holdings.

Cevian Capital has a significant presence in AB Volvo's shareholdings, having acquired shares in the company on multiple occasions.

In 2013, Cevian Capital increased its ownership in AB Volvo to 10.51% of the votes through the acquisition of 25 million A-shares.

Cevian Capital has also controlled 5.0% of the votes in AB Volvo, with its II Master Fund L.P. acquiring 50,000 series A shares.

The divestment of Cevian Capital's entire shareholding in AB Volvo to Nomura International Plc and Barclays Capital Securities Limited included 88.47 million A-shares.

Nomura and Barclays have since committed to sell these shares to Zhejiang Geely Holding Group, following necessary regulatory approvals.

Cevian Capital has held a significant stake in AB Volvo, with its shareholding comprising 88.47 million A-shares and 78.77 million B-shares at one point.

These shares represented 8.2% of the capital and 15.6% of the votes in AB Volvo.

Suggestion: Class a Shares Mutual Fund

Cevian Capital has a significant shareholding in Wolseley plc, with 14,690,088 shares corresponding to 5.2% of the company's voting rights.

Marcus Alexanderson, a partner at Cevian Capital, believes that Wolseley has a strong set of businesses in an attractive industry with significant value potential.

Cevian Capital's ownership in Autoliv exceeds 5%, with a holding of approximately 6.9% of the outstanding shares.

Christer Gardell of Cevian Capital supports Autoliv's decision to focus on automotive safety systems, including active safety and autonomous driving.

Cevian Capital owns 7,335,294 shares in Tieto Oyj, corresponding to 10.18% of the capital and total number of voting rights in the company.

This significant shareholding was disclosed in a public announcement, with Jonas Synnergren listed as a contact for further information.

Cevian Capital also owns 4,033,843 shares in Tieto Oyj, which corresponds to 5.60% of the capital and total number of voting rights in the company.

See what others are reading: Franklin Mutual Shares Fund

Cevian Capital has a history of taking significant stakes in undervalued companies, often seeking a seat on the board to influence business decisions. The firm's notable investment in Skandia, a Swedish insurer, saw its capital invested doubled when the company was sold to Old Mutual in 2006.

Explore further: B Capital

Cevian's significant stake in ThyssenKrupp, acquired through a capital increase in 2013, made it the company's second-largest shareholder behind the Krupp Foundation. The firm's ownership in Bilfinger, a German construction services company, has been steadily increasing since 2011, reaching a peak of 29.5% before settling at 26.8% in 2020.

Cevian's activist approach is evident in its efforts to shape business policies, as seen in its involvement with Demag Cranes, where a 10% stake was acquired in 2010, leading to a takeover bid by Terex in 2011.

Cevian, a Swedish investment company, has been a driving force behind corporate change through its activist investments. They have a history of influencing companies to make significant changes.

In 2018, Cevian successfully pressured ABB to sell its poorly-performing Power Grids unit. This move was a result of Cevian's efforts to improve the company's performance.

Cevian's influence extends beyond ABB, as they also sold their shares in AB Volvo to the Chinese owner Geely in 2017, achieving a profit of over two billion euros. This transaction highlighted Cevian's ability to capitalize on their investments.

Curious to learn more? Check out: Two Sigma Investments Salary

Their focus on driving change and maximizing returns is evident in their recent acquisition of a 1.3% investment in UBS worth £1 billion in 2023. This strategic move demonstrates their commitment to staying active in the market.

Cevian's approach to activist investing has proven to be effective, leading to significant changes in the companies they invest in.

Cevian Capital has invested in Autoliv, exceeding the 5% ownership threshold.

Cevian Capital II Master Fund L.P. has disclosed holdings in Autoliv that correspond to approximately 6.9% of the outstanding shares.

Christer Gardell of Cevian Capital commented on Autoliv's impressive position in automotive safety systems, including its attractive product portfolio in active safety and autonomous driving.

Cevian Capital's investment in Autoliv is a significant one, demonstrating the firm's confidence in the company's future prospects.

Cevian Capital has a history of investing in companies with strong growth potential, and Autoliv appears to be a prime example of this strategy.

Cevian Capital's ownership in Autoliv has been disclosed to the U.S. Securities & Exchange Commission and the Swedish regulator Finansinspektionen.

Cevian Capital launched its $2 billion fund, Cevian Capital II, in 2006, raising capital from a diverse investor base.

The fund manager focuses on the Nordic region and acquires significant minority ownership positions in publicly listed companies to create value through active ownership.

Christer Gardell and Lars Förberg founded Cevian Capital in 2002 and can be contacted for further information at +46 8 545 675 50.

Cevian Capital also engages in divestment, as seen in its sale of 3,800,000 shares in Intrum Justitia AB, reducing its ownership to 2.08% of the capital and total number of votes.

Senior managers and board members of Intrum Justitia AB acquired call options from Cevian Capital L.P., which could further reduce Cevian's ownership to 1.37% if all options are exercised.

Cevian Capital has completed its divestment of its entire shareholding in AB Volvo.

This significant move was announced in 2017, when Cevian Capital agreed to sell its shares to Nomura International Plc and Barclays Capital Securities Limited.

The divestment comprises 88.47 million A-shares, which is a substantial portion of AB Volvo's capital.

Nomura and Barclays have committed to selling these shares to Zhejiang Geely Holding Group, following the receipt of necessary regulatory approvals.

Cevian Capital's divestment of AB Volvo shares is a notable example of a fund's ability to adapt and change its portfolio over time.

The acquisition of AB Volvo shares by Geely Holding comprises 88.47 million A-shares and 78.77 million B-shares, corresponding to 8.2 per cent of the capital and 15.6 per cent of the votes.

This represents the largest ownership in AB Volvo by capital and the second largest by votes.

Cevian Capital's decision to divest its shares in AB Volvo was formalized in a letter dated October 20, 2006, from the company's Director, Denzil Boschat.

Cevian Capital launched a new $2 billion fund in 2006, specifically the Cevian Capital II fund, which was closed on June 30th of that year.

The fund raised approximately $2 billion from a diverse group of investors, a significant achievement for the company.

Cevian Capital was founded in 2002 by Christer Gardell and Lars Förberg, who have since led the company's efforts in the Nordic region.

Their strategy involves acquiring minority ownership positions in publicly listed companies where they can create value through active ownership.

For more information on this fund, you can contact Christer Gardell or Lars Förberg directly, as their contact details are listed in the press release.

Cevian Capital L.P. has reduced its stake in Intrum Justitia AB.

The company sold 3,800,000 shares in Intrum Justitia AB, which is a significant decrease in ownership.

After the transaction, Cevian Capital L.P. owns 1,662,612 shares, corresponding to 2.08% of the capital and the total number of votes in Intrum Justitia AB.

Senior managers and board members of Intrum Justitia AB have acquired call options from Cevian Capital L.P., currently corresponding to a total of 565,000 shares.

Cevian Capital's ownership exceeds 5.0% of Ericsson's votes. This is a significant stake in the company.

Cevian Capital holds 281,757,201 Ericsson B-shares and 331,346 Ericsson A-shares.

This corresponds to approximately 8.46% of shares and 5.01% of votes.

Cevian Capital disclosed this holding to Ericsson and to the Swedish Regulator Finansinspektionen.