STOCKHOLM, Sweden, Oct. 13, 2004 (PRIMEZONE) -- Skanska has signed a memorandum of understanding covering the sale of its majority shareholding, corresponding to 80.4 percent, in Skanska Cementation India Ltd. (SCI). The buyer is Thailand-based Italian-Thai Development Plc (ITD). A binding agreement is expected to be signed within the next few weeks.
The sale is part of Skanska's strategy to have a leading position in certain selected geographical markets.
The agreed selling price of about SEK 100 M generates a capital loss of approximately SEK 140 M as a result of the write-off of goodwill. This will be charged to the Group's earnings for the third quarter of 2004.
SCI is listed on the Mumbay stock exchange and the transaction will be completed after the buyer has first concluded a public offer under the Indian Take Over Code to purchase the minority interest in the company, which is expected to be finalized in February 2005. The completion of sale and purchase of Skanska's shareholding is not dependant on the outcome of the public offer.
SCI is involved mainly in road and civil engineering construction on the Indian market. The company was included in Skanska's acquisition of Kvaerner Construction in 2000.
SCI's net sales in 2003 amounted to approximately SEK 1 billion and it was consolidated in the Skanska Group with an operating profit of SEK 7 M and a loss after taxes of SEK 12 M. The company has approximately 2,000 employees.
For further information please contact:
Hans Biorck, EVP and CFO, Skanska AB, tel +46 8 753 88 00Anna Wenner, Press Officer, Skanska AB, tel +46 8 753 88 39
This and previous releases can also be found at www.skanska.com
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