Scana Divests Its Business in China
Scana Industrier ASA has entered into an “Equity Sale and Purchase Agreement” with Leshan Zhi Yuan Gao Di Mining Co. Ltd. regarding a sale of Scanas 80% equity share interest in Leshan Scana Machinery Co. Ltd.
New owner will immediately take responsibility for daily operation of the company together with the existing organization, and will take responsibility for the company’s obligations. Leshan Scana Machinery is located in Leshan City, Sichuan Province, China.
“The transaction will gradually strengthen Scanas capital base through cash inflow and reduced debt. The “Equity Sale and Purchase Agreement” is now to be approved by Chinese authorities. Also, the Company needs a new business license reflecting the change in the equity interest before the deal is finally closed,” Rolf Roverud, CEO of Scana Industrier ASA, says.
“The sale is part of the activities undertaken by Scana to strengthen Scanas capital base and dispose assets that are considered to be non-core,” Rolf Roverud, says.
Leshan Scana Machinery Co. was founded in 1998 and is a Norwegian-Chinese joint venture, where Scana Industrier ASA owns 80 %. Local authorities in China ownthe remaining 20 %.
Leshan manufactures rolls for the steel industry and cast special products for the steel, energy, oil and gas, construction and shipping industry. Leshan is a respected supplier in the Chinese market and is among the leading in the Chinese roll manufacturing industry. The company has an annual capacity of 20,000 tonnes rolls and cast products.
July 5, 2013