May 02 ,2023
Scana sells its shares in Scana Korea Hydraulic and continues cooperation with partnership agreement
Bergen 2 May: Scana-owned Skarpenord has signed a strategic cooperation agreement with Scana Korea Hydraulic Ltd (SKH) – the joint venture company responsible for production and deliveries of Skarpenord’s valve control systems and a collaboration partner in Korea for more than 20 years.
Scana Korea Hydraulic has a solid customer portfolio and is well established in the Korean home market. With the new agreement, the company will establish production for both the Korean market and Skarpenord’s Asian market in general. Furthermore, Skarpenord will receive royalties from SKH’s sale of Skarpenord licenced products in the Korean market. The patents, trademarks, copyrights, and trade secrets are valuable assets and are still owned by Skarpenord in Norway.
Due to the above changes outlined above, the two companies have decided to end today’s joint venture set-up in Korea. This is why Scana ASA, through our subsidiary Scana Valve Control AS (SVC), today has entered into a share transfer agreement with SKH – transferring 49% of the shares in the joint venture to SKH. Scana ASA will receive 10% of the purchase price upon signing of the agreement, and 90% upon closing of the transaction – which is expected to be within Q2 2023. Scana ASA expects to book a small profit from the transaction, but more importantly: The close and long-lasting collaboration will continue within the frames of the new strategic agreement with our joint venture partners as 100% owners of SKH.
“We are very happy with the good cooperation we have had the past 20 years and will continue to develop this relationship in the future to satisfy our customers’ demands for price and quality. I would also like to thank the President of Scana Korea Hydraulic, Mr. Noh, for his commitment and continuity in the collaboration,” says Trond Bø, Managing Director of Skarpenord.
“The purchase price of approx. NOK 40 million will have a positive effect on Scana’s cash flow and enables further development of our product portfolio,” states Oddbjørn Haukøy, interim CEO of Scana ASA.
For more information, please contact:
Trond Bø, Managing Director, Skarpenord AS, + 47 95 10 04 91
Oddbjørn Haukøy, interim CEO, Scana ASA, +47 911 71 914