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Volvo AERO to be sold to GKN
Thursday, 05 July 2012
Volvo is selling Volvo Aero to the British engineering group GKN for about Skr6.9 billion on debt free basis.
Analysts had determined in June, which the company which was already on
the market would be expected to be sold for an average of Skr7.0
billion. Estimates range, where eight analysts participated, was
ranging from Skr5.2 to Skr8.5 billion media reports in Sweden suggest.
The business, which has now been announced between Volvo and GKN is expected to be closed during the third quarter of 2012.
Sales are expected to generate a capital gain of approximately Skr 400
million, notwithstanding the effect of deferred amortization of assets
related to Volvo Aero under IFRS at the equivalent of Skr200 million.
Thus, the expected positive impact on the Group's operating profit in
the third quarter with approximately hit Skr200 million.
GKN is a global Group with about 45 000 employees in more than 30
countries. The company is a subcontractor to others including
automotive and aerospace industries. In 2011 the company, GKN had a
turnover of approximately Skr63.5 billion, of which Skr 15.8 billion
came from within GKN Aerospace.
The deal requires regulatory approval and is expected to close in the third quarter of this year.
By Scancomark.se Team
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