Sandvik to Sell Majority Stake in Energy Drilling, Completions
October 28 2019 - 2:11PM
Dow Jones News
By Colin Kellaher
Sandvik AB (SAND.SK) on Monday said it agreed to sell a 70%
stake in its drilling and completions operations related to the oil
and gas industry to private-equity firm Blue Water Energy and
privately held owned Nixon Energy Investments for 900 million
Swedish krona ($92.7 million).
The Stockholm industrial-equipment supplier said the divestiture
triggers a SEK3.9 billion write-down of goodwill and other
intangible assets, which it will record in the fourth quarter.
Sandvik said it will keep a 30% stake in the operations and
retain ownership of the mining-related portion of its drilling and
completions arm.
The company said it expects the transaction will generate a
positive cash-flow impact of roughly SEK700 million.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 28, 2019 13:56 ET (17:56 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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