HKScan Corporation Stock Exchange Release 28/2/2014 9:30 a.m.
HKScan to sell its 50% stake in Saturn Nordic Holding AB (Sokolów)
HKScan, a leading Nordic meat company, has signed an agreement to sell all its shares (50%) in Saturn Nordic Holding AB to Danish Crown A/S, the other owner of the company. Saturn Nordic Holding AB holds 100% of the shares in Sokolów S. A. A s a result of the agreement, HKScan will no longer hold an indirect stake in Sokolów , which has been HKScan's joint venture in Poland. HKScan will keep its wholly-owned subsidiary, HKScan Poland Sp.z o.o. located in ?winouj?cie, Poland.
Under the agreement, HKScan sells its shares for a price of EUR 180 million. HKScan will receive a payment in cash. Additionally, HKScan will get a dividend corresponding to PLN 35 million for the year 2013 and will record an estimated capital gain of EUR 67 million for the sale. It is estimated that the divestment decreases the Group’s net gearing by about 50 % points. The completion of the divestment is subject to the approval of competition authorities.
In 2004, HKScan formed a joint venture with Danish Crown and together took over the Sokolów operations. The Sokolów Polish business has been profitable and growing, benefiting both parties during the cooperation. In 2013, HKScan’s 50% share of Sokolów’s net sales was EUR 375 million. The good financial performance and strong growth of Sokolów has impacted positively the value of the business.
“The deal is positive for all parties. For HKScan, the divestment enables the Group to accelerate setting an even stronger focus on our other home markets,” says Hannu Kottonen , President and CEO of HKScan.
“We continue building HKScan as one strong Nordic Group focusing on branded meat business. The deal resulting in strong balance sheet and lower net financial costs will improve our prerequisites for speeding-up the strategic work to invest in our strong brand offering as well as on related production facilities and technologies,” Kottonen adds.
HKScan Corporation Hannu Kottonen President and CEO
For further information, please contact: Hannu Kottonen, President and CEO, HKScan Corporation. Kindly submit a call-back request to Marja-Leena Dahlskog, SVP Communications, firstname.surname@hkscan.com tel. +358 50 50 200 60.
HKScan is the leading Nordic meat expert. We produce, market and sell high-quality, responsibly-produced pork, beef, poultry and lamb products, processed meats and convenience foods under strong brand names. Our customers are the retail, food service, industrial and export sectors, and our home markets comprise Finland, Sweden, Denmark, the Baltics and Poland. We export to close to 50 countries. In 2013, HKScan had net sales of EUR 2.5 billion and some 11 000 employees, making us one of the Europe’s leading meat companies.
DISTRIBUTION: NASDAQ OMX Helsinki, Main media, www.hkscan.com
