To the Board of Directors and the Annual General Meeting of Sandvik
It is hereby proposed that the business area Sandvik Materials Technology (SMT) should be distributed to Sandvik's shareholders and listed on the stock exchange.
Sandvik Materials Technology is the original Sandvik and has done well over the last 150 years. There are large investments employed in the business and great emotional bonds related to it. To get an accurate valuation and an acceptable purchase price for everyone would probably be very difficult. A third party purchaser may end up in a difficult situation when it comes to the managing/integration of the business. The synergy with the rest of the Group seems already to be valued low by the Group Executive Management. At the same time it is noted that attempts made to sell the business indicate a problem getting well paid.
SMT has proved that there are areas where it very well can keep up on the world market. As an independent company, SMT can become a competent, dynamic and successful company.
Distributing SMT to the existing shareholders is a relatively quick and problem-free solution without any prestige losses for anyone. Thereafter, Sandvik's Group Executive Management can focus on the other core businesses.
Have one said A, one can of course also say B, and in a continuation move on to split up and distribute all business areas to the shareholders. There are examples of this in our surrounding world. This would give more independent, smaller and swift-footed companies. But now a distribution of SMT to the existing shareholders is to be considered!
Linköping 4 March 2013