HKScan to sell its 50% stake in Saturn Nordic Holding AB (Sokołów)
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 Sokołów S. A. As a result of the agreement, HKScan will no longer hold an indirect stake in Sokołów, which has been HKScan's joint venture in Poland. HKScan will keep its wholly-owned subsidiary, HKScan Poland Sp.z o.o. located in Świnoujście, 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 Sokołów operations. The Sokołów Polish business has been profitable and growing, benefiting both parties during the cooperation. In 2013, HKScan’s 50% share of Sokołów’s net sales was EUR 375 million. The good financial performance and strong growth of Sokołów 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.
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