30.12.2022, 13:51
Swedish dealer of special equipment Ferronordic sold the Russian business
Source: OREANDA-NEWS
OREANDA-NEWS The Swedish dealer and service company in the segment of cargo and special equipment Ferronordic sold the Russian business to local shareholders associated with the leasing company GILK (JSC "Urban Innovation and Leasing Company).
The perimeter of the transaction included the main Russian subsidiaries of the group - Ferronordic Machines LLC, Ferronordic Trading House LLC, Ferronordic Trading Company LLC and Ferronordic Arkhangelsk LLC. They will be able to use the Ferronordic trademark in Russia for six months.
The transaction price amounted to 9.2 billion rubles. According to Ferronordic, 1.6 billion rubles of this amount were used to repay the company's debts to its former "daughters". The rest of the money was transferred to the company's account in Austria.
"We are glad that we were able to complete this transaction. Despite the extraordinary circumstances, we managed to sell the Russian business at a price equal to the value of the net assets of the companies being sold," said Ferronordic CEO Lars Corneliusson, quoted in the company's message.
Ferronordic has an option to repurchase up to 75.1% of the shares in the sold companies at a pre-agreed price for 7 years.
The company notes in its message that its main partners stopped deliveries to Russia during the year, which made doing business impossible. In August, Ferronordic agreed with Volvo CE and Sandvik to terminate their dealer agreements in Russia.
In a press release, Ferronordic stresses that the abandonment of all assets and liabilities related to Russia will not have a direct impact on the group's activities.
As stated in the message of GILK, which acted as the buyer of the assets of Ferronordic, the business of the Swedish group in Russia is represented by more than 100 branches and a staff of 1.5 thousand employees.
Ferronordic Group is the official dealer of Dressta, Mecalac, Rottne in Russia, as well as Volvo Construction Equipment, Mecalac and Sandvik in Kazakhstan. In several regions of Russia, Ferronordic was also an authorized service dealer of Volvo and Renault Trucks, as well as a dealer of Volvo Penta.
The shares of Ferronordic AB are listed on the Nasdaq Stockholm stock Exchange.
The perimeter of the transaction included the main Russian subsidiaries of the group - Ferronordic Machines LLC, Ferronordic Trading House LLC, Ferronordic Trading Company LLC and Ferronordic Arkhangelsk LLC. They will be able to use the Ferronordic trademark in Russia for six months.
The transaction price amounted to 9.2 billion rubles. According to Ferronordic, 1.6 billion rubles of this amount were used to repay the company's debts to its former "daughters". The rest of the money was transferred to the company's account in Austria.
"We are glad that we were able to complete this transaction. Despite the extraordinary circumstances, we managed to sell the Russian business at a price equal to the value of the net assets of the companies being sold," said Ferronordic CEO Lars Corneliusson, quoted in the company's message.
Ferronordic has an option to repurchase up to 75.1% of the shares in the sold companies at a pre-agreed price for 7 years.
The company notes in its message that its main partners stopped deliveries to Russia during the year, which made doing business impossible. In August, Ferronordic agreed with Volvo CE and Sandvik to terminate their dealer agreements in Russia.
In a press release, Ferronordic stresses that the abandonment of all assets and liabilities related to Russia will not have a direct impact on the group's activities.
As stated in the message of GILK, which acted as the buyer of the assets of Ferronordic, the business of the Swedish group in Russia is represented by more than 100 branches and a staff of 1.5 thousand employees.
Ferronordic Group is the official dealer of Dressta, Mecalac, Rottne in Russia, as well as Volvo Construction Equipment, Mecalac and Sandvik in Kazakhstan. In several regions of Russia, Ferronordic was also an authorized service dealer of Volvo and Renault Trucks, as well as a dealer of Volvo Penta.
The shares of Ferronordic AB are listed on the Nasdaq Stockholm stock Exchange.
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