In a significant move, Cevian Capital has recently secured a 1.3% stake in UBS, translating to approximately 1.2 billion euros (equivalent to $1.31 billion), as confirmed by the activist investor group on Tuesday.
This strategic investment by Cevian Capital is underpinned by its recognition of “significant value potential” within UBS, particularly in the aftermath of its acquisition of Credit Suisse.
Throughout the current fiscal year, UBS shares have experienced a notable surge of 47%, surpassing the growth of the Swiss market index, which recorded a 4% increase.
As of the market close on Monday, UBS shares were valued at 25.35 Swiss francs. Cevian’s managing partner, Lars Forberg, expressed optimism regarding the stock’s potential, suggesting it could reach the 50 franc mark.
Forberg commended the board and management team for their commendable efforts in seamlessly integrating Credit Suisse. He further expressed the group’s admiration for their unwavering commitment to enhancing UBS’s overall performance.
Leveraging the strength gained through the acquisition, UBS now stands as the preeminent global wealth manager with distinctive market positions and robust financial prowess, according to Forberg. He highlighted the potential for UBS shares to attain a value of CHF 50, especially when considering the valuation gap in comparison to Morgan Stanley at 2x price to tangible book.
This move by Cevian Capital underscores the investor group’s confidence in UBS’s trajectory and its strategic positioning in the financial market, marking a noteworthy development in the ever-evolving landscape of global finance.