Danfoss to consolidate ownership through employee share buyback

The Bitten & Mads Clausen Foundation and the Clausen family intend to consolidate ownership of Danfoss by offering to buy back B-shares from employees and former employees. The company has offered a price of 21,246 DKK per share, which includes a 15 percent cash premium on top of the market value determined by Danske Bank in April.

This offer represents a value increase of more than 10,000 percent for those who have held the shares since they were originally sold through an employee program in 2001 at 200 DKK per share. Board Chairman Jens Bjerg Sørensen stated that the move aims to secure the long-term development and success of Danfoss through unified foundation and family ownership.

Shareholders must respond to the offer by November 20. Additionally, Danfoss expects to hold an extraordinary general meeting to amend its articles of association so that an annual value for employee shares is not set in the future.