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Skanska negotiates acquisition in Finland

8/3/1998 12:00 AM CET
Press release

Skanska´s Finnish subsidiary, Skanska Oy, has entered into negotiations with the Finnish construction and property development group Polar concerning the acquisition of Polar´s construction operations, which had net sales of FIM 1.2 billion in 1997 and employ some 1 150 people. In addition, Skanska would also selectively acquire land for development from Polar. The parties also envisage entering into a cooperation agreement regarding construction services related to Polar´s real estate business. Due diligence will begin immediately and the negotiations are expected to be concluded within a month.

PRESS RELEASE, AUGUST 3, 1998                          57/98

SKANSKA NEGOTIATES ACQUISITION IN FINLAND

Skanska´s Finnish subsidiary, Skanska Oy, has entered into negotiations with the Finnish construction and property development group Polar concerning the acquisition of Polar´s construction operations, which had net sales of FIM 1.2 billion in 1997 and employ some 1 150 people. In addition, Skanska would also selectively acquire land for development from Polar. The parties also envisage entering into a cooperation agreement regarding construction services related to Polar´s real estate business. Due diligence will begin immediately and the negotiations are expected to be concluded within a month.

At around FIM 4.5 billion, the combined annual net sales of Skanska Oy and Polar´s construction business would make the merged entity the second largest in Finland and the leading building construction company in the Finnish market.

"Finland is an important market for Skanska and continued expansion in Finland and in our other domestic markets is clearly in line with our strategy", comments Anders C Karlsson, Head of Skanska Europe. "The acquisition of Polar´s construction operations would strengthen our position in construction related services in the Finnish market, where our subsidiary has achieved strong growth since its start-up in 1994. I also regard the intended land investment as very interesting. Project development is an important part of our core business and we now create opportunities to expand this side of our business also in Finland."

 

Danderyd, August 3, 1998

SKANSKA AB
Group Corporate Communications

 


For further information, contact:Anders C Karlsson, President, Skanska Europe, 040-144000
Eero Makkonen, CEO, Skanska Oy, 358-9-615221
Cecilia Schön, Senior Vice President, Corporate Communications, 08-753 8800