Cardo Exercises Warrant and Makes Capital Gain
Cardo has exercised the warrant that was received as part of the selling price on disposal of the Rail business area in September 2002. At the same time, Cardo has decided to sell the shares received to the new principal owner of the operation.
The sale gives a capital gain of approximately SEK 40 million.
Cardo's business area Rail was disposed of on September 25 2002 to Vestar Capital Partners, which placed the operation in a company (SAB WABCO) newly established for the purpose. As part of the selling price, a warrant was received giving Cardo the right to acquire approximately 5 percent of the shares in the acquiring company at their nominal value. At that time, the warrant was booked at an estimated value of SEK 10 million.
In connection with the disposal of SAB WABCO by Vestar Capital Partners to Faiveley Transport, Cardo has exercised the warrant and sold the shares to the new principal owner. The sale of the shares gives Cardo a capital gain of approximately SEK 40 million.
Cardo is an international engineering group and a leading supplier of high-quality products and systems with a good aftermarket. Cardo holds strong positions in the markets for doors and pumps. Cardo has subsidiaries in about 30 countries with the focal point resting in western Europe.