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Cevian Acquires Stake in Swiss Insurer

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Stockholm (HedgeNordic) – Swedish activist investor Cevian Capital has unveiled a 3.12 percent stake in Swiss insurer Baloise Holding AG. The stake is valued at about 214 million Swiss francs or €217 million at the current share price.

“We have followed Baloise for a long time and have invested as we see long-term value potential in the company,” says Robert Schuchna, partner at Cevian Capital. “Baloise has the opportunity to significantly improve its operational results and market position in the coming years.”

“We have followed Baloise for a long time and have invested as we see long-term value potential in the company.”

Robert Schuchna

Cevian Capital, known for its measured and behind-the-scenes approach to activist investing, employs a strategy of “constructive activism,” focusing on a select dozen companies at a time. Founded by Christer Gardell and Lars Förberg, Cevian has offices in Stockholm, London, and near Zurich. The Swedish activist firm previously invested in Swiss engineering group ABB and disclosed a €1.2 billion investment in UBS Group late last year (read more), arguing that the Swiss bank was significantly undervalued compared to its peers. 

The announcement of the stake in Baloise follows a shareholder vote last month to abolish a rule that had previously limited voting rights and shareholder influence on the company’s management. Voting rights are now no longer capped at 2 percent, regardless of the total amount of stock owned by any shareholder. The Basel-based insurer currently has a market capitalization of approximately €7 billion.

Head Office Baloise Insurance Ltd. in Basel 3, Photo: Ralph Dinkel

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Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

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