Getinge (PINK:GETI B) is proposing to spin its Arjo extended care business into a separately traded public company, pending the approval of its shareholders next month.
The Swedish medical device company said this week that it plans to ask stockowners Dec. 4 to approve the distribution of all Arjo shares in which each Series A and Series B Getinge share owner would receive the same shares in Arjo.
“The board of directors believes the proposal to split the group into two separate listed companies, Getinge and Arjo, will enhance the prerequisites to successfully develop the respective businesses which will increase the value for customers as well as shareholders,” chairman Carl Bennet said in prepared remarks.
If approved, the distribution would go through Dec. 8, with Arjo’s Series B shares hitting NASDAQ’s Stockholm exchange Dec. 12.
“I am looking forward to an exciting and successful future for Arjo,” added Arjo president & CEO Joacim Lindoff. “Arjo operates in a market with stable and growing demand, where I see opportunities for us to regain a market-leading position within long-term care while at the same time maintaining our strong market positions within acute care.”
“I am confident that our revised strategy and financial targets will create a more focused business and organization that is better positioned to develop market leading offerings for our customers,” Getinge president & CEO Mattias Perjos said. “The Life Science business has many similarities with our Infection Control business when it comes to technology, but given the customized solutions offering within this segment we believe this setup will better realize further growth opportunities”, he continues.
