ABB (NYSE:ABB) announced its intention to spin off Accelleron (formerly ABB Turbocharging), its market-leading turbocharging division, through way of a dividend in kind of Accelleron Industries shares to ABB’s shareholders, reports Seeking Alpha.
ABB will distribute to its shareholders
If spin-off is approved at the EGM on Sep.7, 2022, ABB will distribute to its shareholders, on a pro rata basis, as a dividend in kind, 1 Accelleron share for 20 ABB shares held.
Accelleron’s listing on SIX Swiss Exchange in Zurich is scheduled for Oct.3, 2022.
ABB’s shareholders will be able to realize the full value of Accelleron, while ABB continues to simplify its portfolio and focus on the megatrends of electrification and automation.
Accelleron has an installed base of 180K+ turbochargers globally and delivers ~10K turbochargers every year.
Post the spin-off, Accelleron’s technological pre-eminence will enable the company to remain at the forefront of innovation by continuing investing in R&D and strengthening partnerships with OEM’s and end users as well as to offer attractive returns to its shareholders.
In 2021, Accelleron generated revenues of $756M with an operating margin of 25%; cash flows from operating activities stood at $163M in 2021 thereby enabling the company to adopt an attractive dividend policy.
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Source: Seeking Alpha
