Skanska is selling its interest in Gammon Skanska

Skanska is selling its interest in Gammon Skanska Skanska has signed a memorandum of understanding to sell its 50 percent interest in Gammon Skanska, a construction company based in Hong Kong. The buyer of Skanska's holding is the British construction company Balfour Beatty Limited. Jardine Matheson will continue to retain its ownership of the remaining half of Gammon. The final sales contract is expected to be signed this summer following completion of the due diligence process. The sale is part of Skanska's strategy of focusing on achieving a leading position in its selected home markets. The sale price of approxemately SEK 500 M corresponds to the Group's book value and consequently there is no impact on Skanska's earnings. Cash flow is affected positively by this amount, and the Group's capital employed is reduced by the corresponding amount. Gammon Skanska is consolidated in accordance with the equity method, whereby net sales, order bookings and order backlog are not reported in Skanska Group's consolidated accounts. Skanska's share in the earnings of Gammon Skanska is reported in Skanska's income statement under the item "Income from associated companies" and amounted to SEK 34 M in 2003. Gammon Skanska, one of the leading construction firms in Hong Kong, also has operations on mainland China and in Southeast Asia. Sales in 2003 amounted to about SEK 5.9 billion (HKD 6 bn) and the company employs about 2,000 persons. For further information please contact: Hans Biörck, CFO, Skanska AB, tel +46 8 753 88 00 Anders Lilja, Senior Vice President, Investor Relations, Skanska AB, tel +46 8 753 88 01 Peter Gimbe, Press Officer, Skanska AB, tel +46 8 753 88 38 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/05/27/20040527BIT20120/wkr0006.pdf PDF