YIT to Spin Off Building Systems, Focus on Construction Business
The new company, Caverion, will sell shares on Nasdaq OMX Helsinki, YIT said today in a statement to the stock exchange in Finland’s capital. Shareholders will be given shares in Caverion as a demerger consideration and their holding in YIT will remain unchanged, the Helsinki-based company said.
“A clearer business structure increases the potential for shareholder value creation,” Chairman Henrik Ehrnrooth said in the statement. “The growth strategies of the companies are different, and we believe that the separate companies offer more attractive investment opportunities than the current setup.”
YIT’s construction services had combined sales of 1.9 billion euros ($2.6 billion) last year, while building systems had 2.8 billion euros in revenue. The company paid 73 million euros for Caverion GmbH of Germany in 2010 to expand in technical building services in central Europe. Building services includes the design, installation and maintenance of heating, plumbing and safety systems.
Shareholders must approve the plan backed by the four biggest owners with about 28 percent of shares and votes. The company’s financiers must also agree to the plan and a re- arrangement of finances. YIT said it has secured sufficient funding, including back-up and guarantee facilities for the business being spun off.
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