The Cargotec Corporation’s Board of Directors, after evaluating strategic options for its core businesses Kalmar and Hiab, has endorsed a partial demerger plan for Cargotec.
According to the demerger plan, Cargotec will demerge so that all assets, debts, and liabilities of Cargotec relating to the Kalmar business area or mainly serving the business are transferred to a new company named Kalmar Corporation to be incorporated in the demerger.
Upon completion, Kalmar would initially have the same ownership structure as Cargotec, and there would not be any cross-ownership between the two businesses. The Hiab business would, in the demerger, remain with the current company.
The demerger is subject to approval by the AGM of Cargotec to be held on 30 May 2024. The planned completion date of the Demerger is 30 June 2024.
Based on the Board of Directors’ assessment, the partial demerger is expected to improve the business performance of Kalmar and Hiab through higher agility, decisiveness, and stronger management focus; at the same time, the move would streamline governance, simplify structures, and enhance transparency and accountability.
“The planning and evaluation of the demerger has progressed well,” said Jaakko Eskola, Cargotec’s Chair of Board.
“The Board of Directors with the support of certain major shareholders, has after careful consideration decided to propose the separation of Kalmar from Cargotec by means of partial demerger to increase shareholder value.”