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Skanska completes sale of shares in Gammon

Press release 8/9/2004 9:35 AM CET

Skanska and UK construction company Balfour Beatty have signed a binding agreement on the sale and acquisition of Skanska’s shareholding in Hong Kong-based construction company Gammon Skanska, whose name is being changed to Gammon Construction Limited.

   Press release

 

August 9, 2004

Skanska completes sale of shares in Gammon

Skanska and UK construction company Balfour Beatty have signed a binding agreement on the sale and acquisition of Skanska's shareholding in Hong Kong-based construction company Gammon Skanska, whose name is being changed to Gammon Construction Limited.

Skanska's shareholding in Gammon Skanska corresponding to 50 percent of shares in the company, was included as part of Kvaerner Construction (UK), which Skanska acquired in 2000. The sale now completed forms part of Skanska's strategy to hold a leading position in other selected geographical markets.

The final agreed sale price will result in a capital loss of approximately SEK 30 M, which will be charged against the Group's earnings for the third quarter of 2004.

The shareholding in Gammon Skanska was accounted in accordance with the equity method. Skanska's share of the company's earnings in 2003 amounted to SEK 34 M.

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For further information please contact:

Anders Lilja, Senior Vice President, Investor Relations,
Skanska AB, tel +46 8-753 88 01