News on 6 November 2000
Skanska has announced the sale of its entire shareholding,
7.6% of the capital in UK construction company Costain Group, to two of
Costain’s current shareholders.
The sale comes as a natural consequence after Skanska’s acquisition
of Kvaerner Construction announced earlier this year (see
News story).
The results from Skanska’s and Costain’s joint projects will
continue to be included in Skanska’s operating profit during the
coming years. Skanska’s share of ongoing projects amounts to approximately
£160m (SEK 2.3bn).
However, the sale of the Costain holding results in a capital loss of
£2m (SEK 30m) and this will be reported under net financial items
for the fourth quarter of 2000.
Commenting on the sale, Skanska Europe’s president Anders Karlsson
said: "The relationship with Costain has been successful and well-received
by customers and we intend to fulfil all of our commitments towards Skanska’s
and Costain’s joint customers and PFI partners. The same applies
to projects in progress and to bids that have been tendered, which will
be implemented as planned."
Lars Johansson, managing director of Skanska UK added: "We will commit
to our customers by allocating our existing Skanska UK team to continue
to support the Skanska/Costain JV in order to avoid any conflict of interest
with the Kvaerner Construction activities."
