(Bloomberg) -- ABB Ltd. said it will sell its high-voltage cable system business to NKT Cables for an enterprise value of $934 million, a decision that will scale down the size the Swiss engineering company’s power-transmission business it is under pressure to spin off.
NKT Cables has production units in Europe and China and had revenues of 1.2 billion euros ($1.3 billion) last year, the Zurich-based company said in a statement. Progress on the strategic review of the power-grids business will be given on Oct. 4, ABB said.
ABB has faced mounting pressure in recent weeks from activist investor Cevian Capital AB to spin off the division making power transmission equipment as a way to create value for shareholders and grow the business. Chief Executive Officer Ulrich Spiesshofer had said ABB would unveil the results of a yearlong review of the division at an investor day scheduled for Oct. 4. Cevian came out publicly last week to urge that the unit be carved out and listed, saying ABB’s current structure is too complex and difficult to run.
“The combination of our niche cable system business with the strength of NKT Cables demonstrates our commitment to active portfolio management, a key element of our Next Level strategy,” Spiesshofer said in the statement.
(Corrects to show NKT Cables’ revenue last year.)
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