STOCKHOLM, Sweden, Nov. 19, 2003 (PRIMEZONE) -- Skanska has signed a letter of intent covering the sale of its controlling interests in its mining contracting business in South Africa, Canada and Australia to Murray & Roberts, a publicly listed leading South African industrial and engineering contractor.
The planned sale involves Skanska's 79.1-percent holding in the publicly listed The Cementation Company (Africa) Ltd, the wholly owned subsidiary Cementation Skanska Canada Inc and a start-up mining contracting operation in Australia.
These businesses within Skanska UK were part of Kvaerner Construction (UK), which Skanska acquired in 2000. The operations mainly include shaft sinking, mine development and contract mining, which are considered to be outside the core business of Skanska.
The total net sales of the businesses to be sold were SEK 1.3 billion in 2002, with an operating profit of SEK 28 M after goodwill amortization. The operations have a total of 8,400 employees.
The transaction is estimated to result in a capital loss of about SEK 100 M, as a result of part of the goodwill allocated to these operations in the acquisition of Kvaerner Construction being written off. The loss will be charged against the Group's earnings in the fourth quarter of 2003.
Following completion of normal due diligence, the intention is for a sale and purchase agreement to be signed in January 2004, with such agreement being subject to regulatory approvals. Financial closing of the transaction is anticipated during the first quarter of 2004.
This and previous releases can also be found at www.skanska.com
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2003/11/19/20031119BIT00230/wkr0001.doc
http://www.waymaker.net/bitonline/2003/11/19/20031119BIT00230/wkr0002.pdf