Skanska sells shareholding in JM
10/27/2000 10:50 AM CET
Press release
On October 27, Skanska sold its shareholding in JM AB (JM) to a large number of Swedish and foreign institutions. The sale was made as part of Skanska’s established strategy, which is to develop its own operations with construction-related services and project development in order to become a leading global company.
The sale was made at a price of SEK 210 per JM share, corresponding to a total sales amount of SEK 1,850 M.
Press Release
October 27, 2000 Skanska sells shareholding in JM
Skanska today sold its shareholding in JM AB (JM) to a large number of Swedish and foreign institutions. The sale was made as part of Skanska’s established strategy, which is to develop its own operations with construction-related services and project development in order to become a leading global company. "The sale of the shares in JM is a logical progression of our strategy. JM is a well-managed company, with a good market position, which has enabled us to obtain a favorable price for the holding and conclude a satisfactory transaction on behalf of our shareholders," says Claes Björk, Skanska’s President and CEO. The sale was made at a price of SEK 210 per JM share, corresponding to a total sales amount of SEK 1,850 M. The capital gain amounts to SEK 890 M. Skanska’s equity portion of JM’s earnings for the first nine months, SEK 174 M, is added to the net effect. Sale of shares in JM – Effect on Skanska’s income statement, 2000 (SEK M) Operating profitItems affecting comparability 890Share of income in associated companies (9 months) 174Total operating profit 1,064Tax -232Net profit for the period 832 Procedure At the time of the sale, Skanska’s holding in JM totaled 8,810,100 shares (corresponding to 26.5 percent of the share capital), of which 1,250,000 were A shares. Skanska has borrowed and then sold B shares (1 vote per share) corresponding to the holding of A shares (10 votes per share). In accordance with the JM Articles of Association, Skanska has proposed to the JM Board that 917,000 of its holding of A shares be converted to B shares. Conversion of the remaining A shares will require an amendment to be made to the company’s Articles of Association. Accordingly, Skanska will remain the owner of approximately 333,000 A shares, equivalent to one (1) percent of the share capital, until such time as the Articles of Association can be amended, when Skanska’s ownership in JM will be finally concluded.