#Sweden #Stockholm #Stock Market #Hexagon #Octave Intelligence

Hexagon's Strategic Move: Distribution and Listing of Octave Intelligence plc

In a significant decision, Hexagon AB has proclaimed its intent to distribute shares of Octave Intelligence plc, facilitating its listing on the Nasdaq Global Select Market in New York. This initiative is set to be discussed in detail during the upcoming Annual General Meeting scheduled for April 24, 2026. This strategic spin-off aims to empower Octave as a standalone entity, positioned to thrive in an increasingly competitive marketplace.

The plan indicates that shareholders of Hexagon will receive one share of Octave for every ten shares they own. This distribution aligns with the so-called Lex Asea rules, which govern such transactions in Sweden. This approach underscores Hexagon's commitment to shareholder value while ensuring a seamless transition for Octave. According to the proposal, all shares of Octave will be distributed and managed via a temporary Swedish depository receipt (SDR) program, allowing shares to be traded in Stockholm initially before they debut on the New York exchange.

This move reflects a broader trend among large companies looking to enhance their operational efficiencies by spinning off segments of their business. By allowing Octave to operate independently, Hexagon positions both firms to concentrate on their core competencies. This separation is expected to provide Octave with the agility necessary to innovate and respond quickly to market changes.

Further elaborating on this decision, the Board of Directors of Hexagon has also recommended that shareholders authorize a record date to determine eligibility for receiving Octave shares. This record date is a crucial step in ensuring a smooth distribution process. As part of this transitional phase, an investor relations strategy has been established, featuring an Investor Day event planned for March 26, 2026, which will offer stakeholders insights into Octave’s vision and operational plans going forward.

The anticipated dates following the announcement are as follows:

• - April 24, 2026: Annual General Meeting of Hexagon.
• - May 20, 2026: Last trading day for Hexagon Series B shares that include the distribution rights.
• - May 21, 2026: Trading in Hexagon Series B shares excluding distribution rights begins.
• - May 22, 2026: Expected record date for the share distribution.
• - May 25, 2026: Trading of Octave SDRs on Nasdaq Stockholm expected to start.
• - May 28, 2026: Trading for Octave Class B Ordinary Shares on Nasdaq New York to commence.

Octave aims to continue its SDR program for an estimated two-year period to gauge the market's response while planning its long-term strategy. The management team led by Elizabeth Chwalk is preparing to file necessary documents with the U.S. SEC outlining the financial logistics surrounding the distribution and adding further insights into the performance of the company.

Over the years, Hexagon has earned its reputation as a leader in measurement technologies, bolstering industries ranging from manufacturing to construction and autonomous systems. With nearly 25,000 employees globally and sales exceeding €5 billion, the company’s commitment to innovation is evident at every level. In parallel, Octave provides essential software solutions designed to enhance decision-making across diverse stages of asset management, focusing on performance and operational safety.

As Hexagon and Octave prepare for their next chapter, investors and stakeholders alike are keenly observing the unfolding story, eager to see how each entity's future develops in this dynamic business landscape. By effectively separating operations, both Hexagon and Octave are poised to explore new opportunities and navigate their respective paths towards growth and innovation.