SDVKY - Sandvik Divests Ownership in Joint Venture Fagersta Stainless
SANDVIKEN, Sweden, May 15, 2018 /PRNewswire/ -- In addition to the previously communicated intention to exit from the stainless wire business, Sandvik further consolidates its business portfolio by divesting its 50% stake in Fagersta Stainless wire rod mill, a joint venture between Sandvik Materials Technology and Outokumpu.
Outokumpu will take full ownership of Fagersta Stainless and the purchase price is 184 million SEK. In 2017, the company's revenues were approximately 1.6 billion SEK, with Sandvik's share of the net profit consolidated as income from associated companies in Sandvik's financial statements.
The transaction is expected to close by the end of June 2018 and is subject to customary regulatory approvals. The transaction will be executed in two phases, so that Sandvik's ownership will decrease to 10% at the end of June 2018 and to zero at the end of 2019. Impact on Sandvik's earnings per share is expected to be neutral.
Stockholm, 15 May 2018
Sandvik AB
For further information, contact:
Ann-Sofie Nordh,
Vice President Investor Relations,
tel: +46-8-456-14-94
Martin Blomgren, P
ress and Media Relations Manager,
tel: +46-70-577-0549.
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SOURCE Sandvik