Sandvik Divests Minority Holding in Xiamen Golden Egret Spec
SANDVIKEN, Sweden, May 13, 2020 /PRNewswire/ -- 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
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Sandvik divests minority holding in Gesac