Korn- og Foderstof Kompagniet (KFK) sells Swedish subsidiary
Oct 10, 2002
Oslo (2002-10-10): The Danish company Korn- og Foderstof Kompagniet (KFK), in which Norsk Hydro owns 68.8 percent of the outstanding shares, has signed an agreement relating to the divestment of its subsidiary, Svenska Foder, to a purchasing consortium consisting of Dansk Landbrugs Grovvareselskab (51 %) and Svenska Lantmännen (49%).
Svenska Foder, which has roughly 250 employees, had a turnover of SEK 1.8 billion in 2001. The sale will be completed by transferring all shares to the consortium in return for an agreed cash payment of SEK 260 million. The transaction is dependent on the approval of the Swedish competition authorities. The divestment involves an accounting loss for Norsk Hydro of some NOK 70 million, which is expected to be charged in the third quarter.
Following the previously agreed divestment of KFK's agricultural operations in Denmark, KFK will have approximately 550 employees working mainly within the fish-feed ( Biomar) and bioenergy (Bioenergi) sectors. These activities will continue under the name Treka A/S. The remaining activities had sales in 2001 of DKK 2.5 billion, and EBIT of DKK 90 million. The divestment of further KFK operations is under consideration.
Certain statements in this press release are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes", "anticipates", "plans", "expects" and similar expressions. These forward looking statements are based on Hydro's current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro's actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 2001 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.
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