Kardex Soars on Promise of Special Dividend: Zurich Mover
Kardex AG (KARN) rose the most in almost seven months, after the Swiss conveyor-belt maker said it has completed a unit sale and plans to pay a special dividend.
Shares in the company climbed as much as 11 percent, the biggest intraday increase since Jan. 12, and were up 6.9 percent at 39.50 francs at 11:48 a.m. in Zurich. More than 34,000 shares exchanged hands, nearly double the average daily volume of the past three months. The Swiss market was closed yesterday for a holiday.
Kardex said on July 31 after markets closed that it had completed the sale of its Stow storage unit to France’s Averys and would pay a special dividend, tax free to Swiss private persons, of 4 francs a share.
“The new focus and the related slimming down should make Kardex more likely to be traded as a takeover target,” Alexander Koller, an analyst at Zuercher Kantonalbank, said in a note to clients, raising the stock to outperform. “The more attractive margin profile raises the fair value and should give the share price an additional boost.”
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