At the beginning of this year, Burckhardt’s five managerial shareholders made a two-pronged announcement.
On the one hand, the firm’s stability was ratified through an IPO shareholder agreement renewal. However, the same group also announced a minor but significant decline in its aggregate shareholdings.
Hans Hess, Chairman of the Board of Directors at Burckhardt Compression Holding AG was pleased with the member’s confirmation of commitment. He said, ““We are pleased that the five key individuals centered around Valentin Vogt have confirmed their long-term commitment to Burckhardt Compression by renewing the shareholder agreement.”
“At the same time, it is also understandable that some members of the original management buyout would like to diversify the very high percentage of their personal financial investment in Burckhardt shares,” added Hess.
In April 2002, the Sulzer Corporation divested Sulzer Burckhardt division through a management buyout. Five members of Sulzer Burckhardt’s sat alongside the financial investor, Zurmont, to acquire the firm. Four years later, Zurmont sold its complete stake through the IPO. At which point, the five management members concluded a shareholder agreement with a five-year term.
Consequently, it was this agreement which recently underwent renewal, when the quintet signed a new shareholder contract for another five years until 2016. The group reiterated its intentions when it notified the company of its intention to conclude a new shareholder agreement with a five-year term once the current agreement reaches expiry (30th June 2011).
Completing the trio of announcements, the group recently publicised that its aggregate holdings of Burckhardt Compression shares have fallen below the disclosure threshold of 15% to 14.8%. But as Hess conveyed, the decision was deemed ‘understandable’.