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Activist investor Cevian Capital has disclosed a stake in Smith & Nephew, sending shares in the London-listed manufacturer of medical devices up more than 5 per cent.
Stockholm-based Cevian had a 5 per cent stake in Smith & Nephew as of July 2, the maker of joint implants and surgical devices said on Thursday.
Smith & Nephew has been hit by supply issues in recent years, while its sales in China have fallen due to changes to procurement practices in the country. It has also suffered from high executive turnover, with three chief executives in five years.
In a statement, the FTSE 100 company said it had “an open dialogue with our shareholders and will continue to engage with Cevian, as we do with all of our shareholders”.
Cevian has previously taken positions in companies including UBS, Vodafone and Aviva.
Smith & Nephew, whose business includes wound management, hip and knee replacements and devices for sports injuries, has had sluggish growth, with revenue coming in below analysts’ estimates in the first quarter of 2024.
Shares were up more than 6 per cent in early trading on Thursday. Before, they had fallen by almost a fifth over the past 12 months.