Finland-based HKScan has signed a deal to sell its 50% stake in Saturn Nordic Holding to Danish Crown, which holds the remaining 50% holding in the firm.
As per the agreed terms, the company will receive €180m in cash as well as a dividend corresponding to PLN35m for the fiscal 2013, and expects to record capital gain of €67m for the sale.
Following the completion of the deal, which is subject to the approval of competition authorities, HKScan will no longer hold an indirect stake in meat firm Sokolów, HKScan's joint venture (JV) in Poland. Sokolów is wholly-owned by Saturn Nordic.
In 2004, HKScan and Danish Crown formed a JV and acquired the operations of meat firm Sokolów. For the fiscal 2013, HKScan's 50% share of Sokolów's net sales was €375m.
The company will continue to operate its wholly-owned subsidiary, HKScan Poland in Swinoujscie, Poland.
HKScan president and CEO Hannu Kottonen said, "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.
"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."
Image: HKScan will no longer hold an indirect stake in meat firm Sokolów. Photo: courtesy of Grant Cochrane / FreeDigitalPhotos.net.
