GOTEBORG, Sweden, Oct. 7, 2002 (PRIMEZONE) -- Geveko has a preliminary agreement, Letter of Intent, with the U.S. business partner Flint Trading Inc. concerning disposal of the holding of 67 per cent in the subsidiary LKF, Inc. USA. By acquiring 67 per cent of the shares in LKF, Inc., Flint Trading Inc. will be the owner of 100 per cent of the shares in LKF, Inc.
LKF, Inc. is manufacturing the nisch product PREMARK(TM) developed by the Danish company LKF Vejmarkering A/S, subsidiary of Geveko. Flint Trading Inc. is responsible for the distribution of prefabricated symbols, PREMARK(TM) on the markets USA, Mexico and Canada.
"The co-operation between LKF Vejmarkering A/S, Denmark and LKF, Inc. USA will continue, based on a license agreement. Consequently LKF Vejmarkering A/S has good possibilities to continue a high level of product development," says Nis Ravnskjaer, Managing Director of LKF Vejmarkering A/S.
"The road marking operations within Geveko will focus on the Nordic countries and Europe. The disposal of LKF, Inc. is part of this strategy. The transaction contributes to strengthen the financial position of Industrial Operations and will increase possibilities to develop business within Europe where we experience great potentiality of structural business as well as continued organic growth above all in Eastern Europe," says Hans Ljungkvist, Mangaging Director and CEO of Geveko.
The transaction is estimated to be settled before the end of 2002. Geveko is expected to make a capital gain of approx. 45 MSEK.