Skanska Sells Interest in Power Company in Peru, Capital Gain of SEK 48 M.
STOCKHOLM, Sweden--(BUSINESS WIRE)
Oct. 11, 2001-Skanska is selling its 40-percent ownership interest in Cahua S.A., a power company in Peru, for USD 12.3 M, or about SEK 130 M. The capital gain from the sale amounted to SEK 48 M.
Skanska's shares in the company were purchased by the world's third largest energy company, NRG Energy of the US. The deal also included a priority position for Skanska for the construction of planned expansion projects in the same basin where Cahua is located. The transaction is being booked in the fourth quarter, when payment is also being received.
Skanska invested in the Peruvian hydropower company last year in cooperation with the Swedish power company Vattenfall. Skanska's ownership interest in the Peruvian company was sold in conjunction with Vattenfall's divestment of operations in the region.
"We received an attractive offer and have now realized the surplus values that were created. Our agreement with the purchasing party also gives Skanska priority, under competitive market conditions, to participate in the expansion of several power plants in the Cahua Valley. As a result, we anticipate further dividends in the form of future construction contracts for Skanska. The Cahua company has received preliminary concessions for expansion projects in the range of 500 MW," says Bert-Ove Johansson, President of Skanska BOT AB.
"For Skanska BOT, which develops and invests in private infrastructure projects, this confirms the validity of our strategy to generate development gains as well as construction opportunities. We have a number of investments in the private infrastructure sector that, in a similar fashion, are expected to generate added value for the Group," says Bert-Ove Johansson.
In Santiago, the capital of Chile, construction has started on a new privately financed toll road. Skanska BOT's investment in the project amounts to approximately SEK 1 billion. Sade Skanska, the Group's subsidiary in Argentina, has received its largest construction contract ever as a result of the investment. The order is valued at USD 190 M, or slightly more than SEK 2 billion.
Skanska BOT is also working on the development of a harbor project in Maputo, in Mozambique, and a hydropower plant construction project in Ponte de Pedra, Brazil. Skanska BOT also holds ownership interests in HM Prison Parc, a privately financed correctional facility built a few years ago by Skanska in Bridgend, in the UK. At present Skanska BOT's total investments amount to approximately SEK 1.8 billion.
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