Sandvik Board of Directors has decided to initiate an internal separation of the business area Sandvik Materials Technology. The intention is to increase Sandvik Materials Technology's structural independence from the Sandvik Group and thereby put greater focus on the business' future development possibilities as well as create flexibility. The Board of Directors has also decided to explore the possibility of a separate listing at the Nasdaq Stockholm Exchange, should that strengthen Sandvik Materials Technology's position and future development. "The decision to initiate an internal separation of Sandvik Materials Technology is based on the board's belief that each part will develop more favorably by itself, increasing opportunities for profitable growth and improving long-term shareholder value," says Johan Molin, Chairman of the Sandvik Board of Directors. "Sandvik Materials Technology represents the origin of Sandvik and great businesses have sprung out of it to shape the current structure. It is my view that a separation will allow full focus on Sandvik Materials Technology's key strengths and its further improved performance," says Bjorn Rosengren, President and CEO of Sandvik. The separation and preparation for a possible listing is expected to take at least a year. There is no guarantee that a decision to finally list Sandvik Materials Technology will be taken.
Sandvik AB downgraded to Underweight from Equal Weight at Barclays. Barclays analyst Lars Brorson downgraded Sandvik AB to Underweight and lowered his price target for the shares to 145 kronor from 160 kronor.