ABB Group to spin off its turbocharging business ‘Accelleron'; stock under pressure

22 Jul 2022 , 09:16 AM

ABB India Limited informed the exchanges that ABB Group (Zurich, Switzerland) has announced its decision to spin off Accelleron (formerly ABB Turbocharging) its market-leading turbocharging division, by way of a dividend in kind of Accelleron Industries Ltd.’s shares to ABB’s shareholders.

Accelleron’s listing on the SIX Swiss Exchange in Zurich is scheduled for October 3, 2022, and is subject to approval by ABB shareholders at an Extraordinary General Meeting on September 7, 2022, among other things.

The proposed Accelleron spin-off represents a once-in-a-lifetime opportunity for both companies, allowing them to focus on their respective core strategies while creating long-term value for their stakeholders. While ABB continues to simplify its portfolio and focus on the megatrends of electrification and automation, ABB’s shareholders will be able to realise the full value of Accelleron.

Accelleron will be able to focus solely on realising its full potential in the large engine industry, where it is known as the market leader in heavy-duty turbocharging, thanks to a compelling growth profile, and high cash generation, and an attractive expected dividend policy.

Accelleron designs, manufactures, and services turbochargers and large turbocharging components for engines, improving propulsion and fuel efficiency while lowering emissions. Accelleron has over 180,000 turbochargers installed worldwide and delivers approximately 10,000 turbochargers per year.

ABB India is trading at Rs2,771.40 down by Rs0.75 or 0.03% from its previous closing of Rs2,772.15 on the BSE. The scrip opened at Rs2,800 and has touched intraday high and low of Rs2,800 and Rs2,765.90 respectively.