Activist investor Cevian Capital increased its position in Smith & Nephew to a 5% stake in the British medical equipment maker, making it Smith & Nephew’s second largest shareholder according to reports by Reuters. According to LSEG data, Cervian is known for taking stakes in companies and calling for change.
In recent years, Smith & Nephew has lost significant stock value following an all-time high in early 2020, prior to pandemic restrictions and subsequent world economic events that have impacted the company’s operating margins, according to the Reuter’s report.
Friederike Helfer, a partner at Cevian Capital, told Reuters, “Smith & Nephew owns fundamentally attractive businesses in structurally growing markets, but the company has not generated shareholder value for many years. [We] see the potential to create significant long-term value by improving the operating performance of the company’s businesses. We have high expectations for the board and management to realize this potential,” he added.
According to reports, Smith & Nephew said it would continue to engage with Cevian “as we do with all of our shareholders.”
Smith & Nephew shares were up 7% as a result of the Cervian filing.
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