Activist investor Cevian Capital cut its stake in Ericsson to 7.4 per cent of share capital, to adjust its portfolio weight and explore other investment opportunities, Reuters reported.
A filing to the US Securities and Exchange Commission on 24 April showed Cevian Capital reduced its holding of Ericsson Class B shares by almost 34 million, to 246.9 million.
Christer Gardell, managing partner and co-founder of Cevian Capital, told Reuters the move was taken to adjust the weighting of its portfolio to a suitable level, with the proceeds going towards investments in other companies.
Despite the decision, Gardell noted the investment company still believed in the potential of the Sweden-based vendor.
Ericsson’s annual report showed Cevian Capital held an 8.43 per cent stake at end-2019, with holding companies Investor AB and Industrivarden having stakes of 7.2 per cent and 2.61 per cent respectively.
Cevian Capital acquired a 5.6 per cent stake in Ericsson in May 2017 [1] for a reported sum of $1 billion. Five months later, Investor AB surpassed Cevian Capital to become Ericsson’s largest shareholder [2] by raising its stake to 6.6 per cent.
[1] https://www.mobileworldlive.com/featured-content/home-banner/ericsson-must-deliver-on-potential-new-investor-warns/
[2] https://www.mobileworldlive.com/featured-content/top-three/ericsson-ownership-swings-back-to-investor/
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