Melker Schorling, Sweden's quiet tycoon with the Midas touch

Sun Jul 24, 2016 7:53am EDT
 
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By Mia Shanley and Niklas Pollard

STOCKHOLM (Reuters) - Business tycoon Melker Schorling, one of Sweden's most prominent investors, says he is well-positioned to expand his 60 billion crown ($7 billion) investment empire even as he prepares to hand over affairs to his daughters.

MSAB, the holding company he set up in 1999 which spans a diverse set of companies from measurement technology to locks and guards, has consistently outperformed larger rivals.

Investors attribute Schorling's success to a knack for picking small specialists which go on to become global market leaders.

In a decade, MSAB has had returns of over 500 percent, outperforming rivals such as Wallenberg-backed Investor AB and Industrivarden and leading Swedish media to dub Schorling "King Midas" of the Stockholm bourse.

MSAB investors include H&M chairman Stefan Persson and BP & AB Volvo Chairman Carl-Henric Svanberg.

But while Schorling's path to success has had few bumps, some analysts are beginning to question the future of the group which has not made a single new investment in a decade.

Schorling turns 70 next year and although his daughters have become more involved they have not yet stepped into high-profile executive roles, and he recently lost one of his closest team members, MSAB CEO Ulrik Svensson, who leaves at year-end to join Lufthansa as CFO.

Svensson's departure raises some questions about the group's direction and stability, analysts say.   Continued...

 
Swedish businessman Melker Schorling, major shareholder of the security companies Securitas and Assa Abloy, is seen in this file photo taken in Stockholm, Sweden May 26, 2005. To match Insight SWEDEN-TYCOON/     TT News Agency/Tomas Oneborg/via REUTERS  ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. SWEDEN OUT. NO COMMERCIAL OR EDITORIAL SALES IN SWEDEN.