London, 18 November 2025 — ConvaTec Group Plc (LON: CTEC) finished Tuesday lower after long‑time shareholder Novo Holdings A/S priced a £351 million secondary share offering that removes its entire stake in the FTSE 100 healthcare group. At the same time, IT services firm LTIMindtree disclosed a new SAP S/4HANA transformation contract with ConvaTec, underscoring the medtech company’s ongoing operational modernisation despite near‑term share price pressure. [1]
Novo Holdings exits ConvaTec with £351m block sale
Novo Holdings — the investment arm of the Novo Nordisk Foundation and former largest shareholder in ConvaTec — has sold its entire holding in the company via an accelerated bookbuild to institutional investors. [2]
Key details of the secondary offering:
- Size of the deal: Around 155 million ordinary shares, representing roughly 7.8% of ConvaTec’s issued share capital. [3]
- Price: Shares were placed at 227 pence each, a 5.1% discount to Monday’s closing price of 239.2p. [4]
- Gross proceeds: About £351 million, all of which will go to Novo Holdings; ConvaTec itself receives no cashfrom the deal. [5]
- Settlement: Completion is expected on 20 November 2025, subject to customary conditions. [6]
- Banks: Goldman Sachs International and Morgan Stanley & Co. International acted as joint global coordinators and bookrunners. [7]
Novo had already economically “monetised” its remaining ConvaTec exposure through derivative transactions with hedge counterparties. Those instruments will settle alongside the block trade, leaving Novo with no residual position in ConvaTec once the deal closes. [8]
According to coverage of the transaction, some of the freed‑up capital is expected to be redirected toward renewable energy projects and quantum‑technology ventures, such as repowering German wind farms and backing specialist quantum‑computing firms — part of Novo’s wider pivot toward “planetary health” and next‑generation tech. [9]
ConvaTec share price today: CTEC drops over 3% after block trade
The ConvaTec share price reacted sharply to the news.
- Close (18 November 2025): 230.8p, down 3.5% from Monday’s 239.2p close. [10]
- Intraday range: Shares traded between 228.8p and 233.8p during the session. [11]
- Volume: Around 6.8–6.9 million shares changed hands, in line with the recent three‑month average. [12]
- 52‑week range: The stock now sits roughly 6% above its 52‑week low of 218p and about 26% below the 52‑week high near 311.2p. [13]
In early trading, ConvaTec was among the FTSE 100’s weaker performers, sliding more than 3% as the market digested the discounted placing. [14]
Importantly, this is a secondary sale: no new shares were issued and existing shareholders are not diluted. The immediate negative is technical — a large block of stock being placed at a discount — rather than a change to ConvaTec’s own balance sheet or strategy.
Why is Novo Holdings selling ConvaTec now?
Novo Holdings first bought into ConvaTec in 2017, at one point owning around 20% and holding board representation. That boardroom link ended in 2023, with Novo citing momentum in the business and confidence in management as reasons it no longer needed a seat at the table. [15]
From Novo’s perspective, this week’s exit looks like portfolio rebalancing rather than a judgment that ConvaTec’s business has deteriorated:
- The investment firm is actively reallocating capital into renewables and advanced technologies, including a programme to upgrade European wind farms and a dedicated quantum‑tech portfolio. [16]
- ConvaTec remains in a sector — medtech and chronic‑care devices — that Novo still views as strategically important, but the holding has become a mature, cash‑generative asset at a time when Novo wants more exposure to higher‑growth sustainability and tech themes. [17]
For ConvaTec shareholders, the implications are mixed:
- Short term: The discount placing has pressured the CTEC share price and may encourage some follow‑on selling as placed stock is digested. [18]
- Medium term: With Novo fully out, a longstanding overhang is removed. Future stake sales by this particular holder are no longer a risk, which can ultimately be a positive for valuation once the block is absorbed.
LTIMindtree SAP S/4HANA deal underlines ConvaTec’s digital push
Away from the shareholder reshuffle, ConvaTec also features in technology‑sector news today.
IT services firm LTIMindtree has secured a contract with London‑headquartered ConvaTec to roll out SAP’s Digital Core (S/4HANA) across the group’s operations. [19]
According to TechMarketView’s report:
- The programme aims to standardise processes and improve operational efficiency across ConvaTec’s global footprint. [20]
- ConvaTec is described as a global medical products and technologies company with about 10,000 employees, active in more than 100 countries, and generating over $2.2 billion of revenue in 2024. [21]
For investors, the SAP S/4HANA initiative reinforces that ConvaTec is continuing to modernise its systems and scale its infrastructure, which could support margin expansion and better data‑driven decision‑making over the next few years. It also signals that management feels confident enough in the business to invest in a complex, multi‑year digital transformation.
Trading update last week: guidance narrowed, earnings outlook still strong
Today’s share‑price move comes only days after ConvaTec’s 10‑month trading update, published on 13 November 2025, which was broadly supportive of the investment case. [22]
Key takeaways from that update include:
- Organic revenue growth (10 months to 31 October 2025): About 6.3% excluding InnovaMatrix®, with growth “broad‑based” across chronic‑care categories. [23]
- Full‑year 2025 guidance:
- Organic revenue growth 6.0–6.5% excluding InnovaMatrix (narrowed from 5.5–7.0%). [24]
- Adjusted operating margin still expected at 22.0–22.5%, up from 21.2% in 2024, even after around 30 bps of tariff headwinds. [25]
- Management continues to target double‑digit adjusted EPS growth and mid‑20s operating margins by 2026–27. [26]
Notably, ConvaTec has had to contend with changes in US reimbursement for skin‑substitute products. Earlier this month the company flagged that revised US government payment rules could trim up to 2 percentage points off revenue, and now expects around $70 million of 2025 sales from the InnovaMatrix® franchise. [27]
Even with that headwind, ConvaTec believes it can deliver double‑digit profit growth in 2026, helped by new wound‑care products and rising demand across key markets — a message that had pushed the shares as much as 8% higher on the day of the update. [28]
How today’s developments fit together for ConvaTec
Putting the pieces together:
- Fundamentals remain intact
- ConvaTec is growing organically in the mid‑single to high‑single digits, expanding margins and still guiding to double‑digit earnings growth. [29]
- The company is investing in R&D and capacity, including plans for a major new R&D centre in Manchester as part of a broader $1 billion investment programme that also covers the US. [30]
- Strategic and digital initiatives are progressing
- The new SAP S/4HANA roll‑out with LTIMindtree aligns with ConvaTec’s push to standardise global operations and improve efficiency — often a prerequisite for scaling margins in complex medtech businesses. [31]
- Shareholder base is reshaping, not collapsing
- Novo Holdings’ sale is a change in ownership structure, not a sign that ConvaTec is raising capital or in financial distress. The company’s balance sheet and cash‑flow guidance are unchanged by today’s transaction. [32]
- Short‑term volatility vs. long‑term story
- In the short term, the discounted placing and block of stock hitting the market have pushed CTEC lower and may keep volatility elevated as the new holders settle their positions. [33]
- Longer term, the removal of a large legacy shareholder while fundamentals and digital initiatives trend in the right direction could eventually be seen as clearing the overhang on the ConvaTec share price.
What to watch next
Investors following ConvaTec Group Plc may want to keep an eye on:
- Share price stabilisation around or above today’s 230.8p level as the block placing is absorbed. [34]
- Execution of the SAP S/4HANA project, including any commentary on costs, milestones and expected efficiency gains in future results calls. [35]
- Updates on US reimbursement for skin‑substitute products and how quickly ConvaTec can offset any drag from InnovaMatrix® with growth in other categories. [36]
- Any fresh broker ratings or target‑price revisions now that Novo’s exit and the trading update have reset the narrative around the stock.
This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Always conduct your own research or consult a qualified financial adviser before making investment decisions.
References
1. www.reuters.com, 2. www.lse.co.uk, 3. www.investegate.co.uk, 4. www.reuters.com, 5. www.investegate.co.uk, 6. www.investegate.co.uk, 7. www.investegate.co.uk, 8. www.investegate.co.uk, 9. www.ainvest.com, 10. www.investing.com, 11. www.investing.com, 12. www.investing.com, 13. www.investing.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.ainvest.com, 17. www.ainvest.com, 18. www.sharecast.com, 19. www.techmarketview.com, 20. www.techmarketview.com, 21. www.techmarketview.com, 22. www.convatecgroup.com, 23. www.investing.com, 24. www.convatecgroup.com, 25. www.sharesmagazine.co.uk, 26. www.convatecgroup.com, 27. www.convatecgroup.com, 28. www.reuters.com, 29. www.investing.com, 30. www.insidermedia.com, 31. www.techmarketview.com, 32. www.investegate.co.uk, 33. www.sharecast.com, 34. www.investing.com, 35. www.techmarketview.com, 36. www.convatecgroup.com
