Brief: Ferronordic Sells Its Russian Business

Ferronordic AB

23/12/2022 09:05

Dec 23 (Reuters) - Ferronordic AB  FNMA.ST :
    * FERRONORDIC SELLS ITS RUSSIAN BUSINESS
    * PURCHASE PRICE CORRESPONDS TO SEK* 1,320M.
    * APPROX. SEK 230M OF THIS AMOUNT HAS BEEN USED BY
FERRONORDIC AB
TO REPAY DEBT TO SOLD RUSSIAN SUBSIDIARIES.
    * DIVESTMENT THUS ENTAILS A CASH INFLOW OF APPROX. SEK
1,090M.
    * FERRONORDIC'S OTHER OPERATIONS IN GERMANY AND KAZAKHSTAN
ARE NOT
DIRECTLY AFFECTED BY TRANSACTION
    * SALE MEANS THAT FERRONORDIC IN ALL MATERIAL RESPECTS HAS
DIVESTED ALL ASSETS AND LIABILITIES RELATING TO RUSSIA
    * SOLD COMPANIES MAY CONTINUE USE OF FERRONORDIC TRADEMARK
DURING
A TRANSITION PERIOD OF SIX MONTHS
    * BUYER IS PART OF GILK GROUP, A RUSSIAN LEASING COMPANY.
    * WILL MAINTAIN ONE SUBSIDIARY IN RUSSIA TO KEEP A SMALL
NUMBER OF
KEY EMPLOYEES IN RUSSIA WORKING FOR GROUP
    * INTENTION IS THAT THESE EMPLOYEES WILL RELOCATE TO OTHER
MARKETS
OVER TIME.
    * IN GERMANY, MORE FOCUS WILL BE DIRECTED AT DRIVING
ELECTRIFICATION OF TRUCKS AND SUSTAINABLE TRANSPORT SOLUTIONS.

Source text for Eikon:  ID:nWkr6d1gwg 
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