Arbonia’s shares saw an increase after announcing the decision to put its climate division up for sale in response to unsolicited bids for the business.

Trading Information

At 1123 GMT on Tuesday, shares were trading 16% higher at CHF11.50. They are currently down 9% compared to a year ago.

Sale Announcement

The Swiss building-components supplier disclosed that it had received unsolicited expressions of interest from potential buyers for its climate division, previously known as heating, ventilation, and air conditioning. Subsequently, the board opted to initiate a formal sale process.

Progress and Plans

Negotiations with interested parties are progressing, with an advanced stage reached. Should a transaction be finalized, Arbonia intends to distribute a significant portion of the proceeds to shareholders while also reducing existing debt.

Potential Sale Value

Although no specific price was provided by Arbonia, analyst Tobias Fahrenholz from Stifel estimated that the division could be valued at 700 million Swiss francs ($795.5 million) based on industry comparisons.

Financial Performance

As part of the announcement, Arbonia reported a shift from a profit of CHF19.1 million in the previous year to a net loss of CHF17.2 million in 2023. Revenues decreased by 9.2% to CHF504.6 million due to challenging conditions in the construction sector across its main markets.

Outlook for 2024

Looking ahead, Arbonia foresees a demanding environment in its core markets for 2024.

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