Sandvik divests minority holding in Xiamen Golden Egret Special Alloy Co., Ltd. (Gesac)
Sandvik Machining Solutions divests its 10% minority ownership in Gesac, a Chinese joint venture originally formed in 2005 to secure the supply of tungsten. Since then, Sandvik Machining Solutions has expanded its cutting tool recycling capabilities as well as acquired Wolfram Bergbau und Hütten in 2009, a world-leading supplier of tungsten powders.
The minority holding will be divested to Xiamen Tungsten Co., Ltd., the majority owner of Gesac. Purchase price corresponds to approximately SEK 0.7 billion (CNY 0.49 billion), based on current exchange rates and upon closing a capital gain of approximately SEK 0.6 billion reported in Sandvik’s net financial items. Closing of the divestment is expected during the summer of 2020.
Stockholm, 13 May 2020
Sandvik AB
For further information, contact Ann-Sofie Nordh, Vice President Investor Relations, phone: +46 8 456 14 94 or Martin Blomgren, Press and Media Relations Manager, phone: +46 70 577 0549.
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Sandvik Group
Sandvik is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and sustainability. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining industry and rock excavation within the construction industry; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2019, the Group had approximately 40,000 employees and revenues of about 100 billion SEK in more than 160 countries within continuing operations.
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