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Terex (TEX) to Divest 7.45 Million Shares of Konecranes

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Terex CorporationTEX announced its intention to sell 9.5% of the total shares outstanding of Konecranes Plc, or 7.45 million of its Class A shares at a price of EUR 34.50 ($36.65) per share.The price is at a 3.25% discount to Konecranes' closing price on Nasdaq Helsinki on Feb 14, 2017. Total shares outstanding includes both Class A and Class B Konecranes shares but does not include Konecranes treasury shares.

Following the completion of the sale, Terex 's will hold approximately 12.15 million Class B Konecrane shares, or approximately 15.5% of the total shares outstanding of Konecranes.

Terex had received 19.6 million newly issued class B shares representing a 25% interest in Konecranes following the sale of its Material Handling & Port Solutions (MHPS) segment to the latter in Jan 2017. Further, Terex had received approximately $807 million in cash. The sale was in sync with its efforts to simplify the company structure, systems and footprint in a bid to improve efficiency and enhance global competitiveness.

Terex Corporation Price

Terex Corporation Price | Terex Corporation Quote

In line with this, in Oct 2016, Terex completed the sale of its German compact construction business to Yanmar for $60 million in cash. Included in the sale was the manufacturing facility located in Crailsheim, Germany, and parts distribution center located in Rothenberg, Germany.

Terex's transition into a more focused and simpler company will boost results. The company will benefit from cost-saving initiatives and product development. Terex's performance is likely to be bolstered by continued traction in new and innovative products.

In the past one year, Terex has outperformed Zacks categorized Machinery-Construction/Mining sub industry. Terex's shares have surged 53.3% in the said time frame, coming ahead of the industry's gain of 44.7%. Investors appreciate the company's efforts to simplify structure and its focus on growth, which is reflected in the company's price performance year to date.

Terex currently carries a Zacks Rank #2 (Buy).

Some other favourably placed stocks worth considering in the same sector include Applied Industrial Technologies, Inc. AIT , Actuant Corporation ATU and Graco Inc. GGG . All three of these stocks carry the same rank as Terex. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Applied Industrial has a positive average earnings surprise of 6.18% in the last four quarters. Actuant generated a positive average earnings surprise of 11.47% in the trailing four quarters. Graco has delivered an average positive earnings surprise of 2.21% in the last four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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