Double increase and a successful CEO leaving – here are the most important news of the week
Nordic Capital wants to buy back Cary Group, the Riksbank raised the key interest rate by 50 basis points to 0.75 percent, Ola Rollén’s position as CEO of Hexagon and the half-year had a gloomy stock market result.Di guides you through the week’s most important news.Published: July 2, 2022, 07:19Nordic Capital’s cow turnAnders Jensen, CEO of Cary Group. Photo: Jesper FriskNordic Capital wants to take Cary Group off the stock market, just nine months after the venture capital company listed the company that is best known in Sweden for Ryds Bilglas. The offer, which takes place together with venture capital colleague CVC, is 7 percent lower than what Nordic Capital sold the shares for at the time of listing. This is far from the first time that there is reason to criticize Nordic Capital’s introductions. The major shareholder AMF, which subscribed both in connection with this and other Nordic Capital introductions, immediately said no to the offer. It can also be noted that the adviser Carnegie was present both at the listing and now at the delisting offer.Double increase from the RiksbankPhoto: Joey Abrait Just as Di’s shadow executive suggested earlier this week, the Riksbank raised the key interest rate by 50 basis points to 0.75 percent. The move away from the long-term zero interest rate is thus taken in big steps. The Riksbank also announces further increases so that, according to the forecast, the key interest rate lands at around 2 percent at the beginning of next year. Many observers expect two more double increases in the autumn. The outgoing Riksbank Governor Stefan Ingves, who stuck to the zero interest rate significantly longer than many outside the central bank wanted, commented on the announcement that “Inflation in Sweden is too high and it is time for the Riksbank to act”.Successful CEO changes focusSuccession in the measurement technology company Hexagon follows the textbook. This is not to say that there cannot be concerns when Ola Rollén – one of Stockholm Stock Exchange’s by far the most successful CEOs – is to switch to the role of chairman. When Ola Rollén took over as CEO of Hexagon 22 years ago, it was a small workshop conglomerate with a market capitalization of approximately SEK 1.5 billion. Since then, Hexagon has become a leader in measurement technology and has grown to a market capitalization of almost SEK 300 billion, more than the telecom veteran Ericsson. Ola Rollén will also devote a lot of time to his other investments, where he is now also starting to talk about a possible IPO of the owner company Greenbridge. Ola Rollén has for several years steadily reduced his previously extensive shareholding in Hexagon, and instead invested more and more in his private share portfolio. Gloomy six months on the stock marketFriday certainly offered a weak stock market rise, but when the first half of the year ended on Thursday, it was with a really gloomy stock market outcome. Indices were periodically traded during the day at annual lows, in total the Stockholm Stock Exchange’s broad index fell by nearly 30 percent during the half year. Among the big losers were real estate companies and the serial acquirers who were very popular for a while. Investors generally shun companies with a lot of debt when interest rates are now rising, and companies with expectations where expected profits lie far into the future. Among the few winners are defence-related stocks, with Saab at the forefront.