Baar, Switzerland -- Forbo, a specialist in flooring systems, adhesives and transmission and conveyor-belts, has reduced its stake in automotive acoustics supplier Rieter to below 3 percent, a 13 April company statement said.
Forbo has sold the bulk of its shares to Artemis Beteiligungen IV AG at a price of CHF 320 ($302) per share. The Swiss company said that, owing to the impacts of the financial and economic crisis, its strategic and operational priorities have changed.
The delivery of the shares, which will generate cash of around CHF 92 million, will take place towards the end of June 2010, the statement said.
Forbo said it will use the proceeds of the sale for its strategic and operational activities as well as a further debt reduction. The company aims to achieve an income of around CHF 43 million before taxes, for the 2010 business year.
Rieter's automotive business unit includes polyurethane foam products for sound and vibration damping. (RD)