Saab to divest shares in Vricon to Maxar Technologies for USD117m.
NORDIC BUSINESS REPORT-June 24, 2020-Saab to divest shares in Vricon to Maxar Technologies for USD117m
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Defence and security company Saab AB (STO:SAABB) announced on Wednesday that its partner in the joint venture company Vricon Inc, Maxar Technologies, has on 24 June 2020, announced its intention to acquire Saab's shares in Vricon Inc based on a call option.
According to Saab, it has not yet received a formal call option exercise notice from Maxar Technologies. The purchase price is agreed at USD117m, provided that Maxar Technologies exercises the call option by or before 30 June 2020.
In 2015, Saab had entered into a 50/50 JV, Vricon Inc, with DigitalGlobe (now Maxar Technologies) to produce photo-realistic 3D products and digital elevation models globally for enterprise and government geospatial markets.
Under an agreement between the stockholders, Maxar Technologies was granted a call option to acquire Saab's shares in Vricon Inc in 2020 or 2021.
This contemplated transaction is in line with Saab's strategy to create value through innovation and by further optimising its product portfolio. If and when Maxar Technologies exercises the call option, the intended transaction becomes formally binding and the financial implication for Saab from such transaction would be a positive cash flow effect of USD117m and a preliminary capital gain of approximately SEK1.0bn.
Reportedly, Maxar Technologies has declared its intention to exercise the call option on or about 25 June 2020 and the agreed objective would then be to close the transaction in July 2020.
Also, Saab and Maxar Technologies are preparing to enter into new partnership agreements to ensure future technical product development for the benefit of their current and future customers.
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|Publication:||Nordic Business Report|
|Date:||Jun 24, 2020|
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