EANS-News: SHW AG: One-off proceeds in the mid double-digit million range from sale of stake in Canadian STT
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Joint Ventures/Cooperation/Collaboration Aalen (euro adhoc) - High proceeds from the sale of the Canadian participation - Arbitration proceedings settled amicably - Further internationalisation with wholly-owned subsidiaries Aalen, 28 September 2012. SHW AG, one of the leading automotive suppliers for CO2-relevant pumps and engine components as well as brake discs has reached an agreement with its joint venture partner for the sale of its 50% stake in STT Technologies Inc., Canada. The sales price in Euro will be in the mid double-digit million range. The closing of the transaction is planned until the end of October 2012. The proportionately consolidated STT achieved a sales contribution of EUR 31.2 million in the first six months of fiscal year 2012. This equals approximately 15 percent of group sales. "We shall amicably settle the arbitration proceedings and hence strengthen considerably our financial basis for the internationalization of our business," says CEO Dr. Wolfgang Krause, who is responsible for the Pumps and Engine Components business segment. International market development with wholly-owned subsidiaries SHW AG will follow through its internationalisation strategy with wholly-owned subsidiaries. With the sale of its joint venture SHW gains free access to the North American market. Therefore the NAFTA region will be a special focus point besides the existing activities in China and Brazil. "We still consider the North American vehicle market as very interesting. Based on our CO2-relevant products we see good growth opportunities there," emphasises Dr. Krause. We also gain tailwind from the latest initiative of the Obama administration, requiring from the OEMs to cut fuel consumption by approximately 50 percent until 2025. Sale proceeds enable repayment of bank liabilities With the sales proceeds we shall repay our bank liabilities (30 June 2012: EUR 21.4 million). "At the same time, we gain considerable room for further growth through acquisitions," says CFO Oliver Albrecht. About SHW The enterprise was established in 1365, making it one of the oldest industrial enterprises in Germany. Today, the SHW Group is a leading supplier for the automotive industry with products that contribute to a reduction of fuel consumption and consequently CO2 emissions. In its Pumps and Engine Components business segment, the SHW Group develops and produces pumps for passenger vehicles and truck and off-highway applications, e.g. trucks, farm and construction vehicles, stationary motors and wind power stations. The Brake Discs business segment develops and produces monobloc ventilated brake discs made of cast iron and lightweight brake discs made from a combination of an iron friction ring and an aluminium pot. Customers of the SHW Group include leading producers of passenger cars and commercial vehicles with manufacturing facilities in Europe and North America. The SHW Group has four manufacturing sites in Germany, located in Bad Schussenried, Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen ob Eck. Via its 50 percent interest in the Canadian company STT Technologies Inc., the company also has production sites in Canada and Mexico. With more than 1,000 employees, the SHW Group generated approx. EUR 360 million in sales in 2011. Further information is available at: www.shw.de Future-oriented statements This press release contains certain future-oriented statements that are based upon current assumptions and forecasts made by the management of SHW AG. Various known and unknown risks, uncertainties and other factors may lead to the actual results, financial position, development or performance of the company deviating considerably from the appraisals specified here. The company assumes no obligation to update future-oriented statements of this nature or adapt them to future events or developments. Note This announcement does not constitute an offer to sell securities in the United States of America, Canada, Australia, Japan or any other jurisdictional territory where offers are subject to statutory restrictions. The securities named in this announcement may only be sold or offered for sale in the United States of America following their prior registration in accordance with the provisions of the version of the US Securities Act of 1933 currently in force (the "Securities Act") or, without prior registration, only on the basis of an exemption. Unless provided for by certain exceptions within the Securities Act, the securities named within this announcement may not be sold or offered for sale in Australia, Canada or Japan, nor may they be sold or offered for sale to or for account of residents of Australia, Canada or Japan. No registration of the offer or sale of the securities named in this announcement will take place, as stipulated by the relevant statutory provisions in Canada, Australia and Japan. There is no public solicitation to buy securities in the United States of America. Further inquiry note: Michael Schickling Head of Investor Relations & Corporate Communications SHW AG Telephone: +49 (0) 7361 502 462 Email: michael.schickling@shw.de end of announcement euro adhoc -------------------------------------------------------------------------------- company: SHW AG Wilhelmstrasse 67 D-73433 Aalen phone: +49 7361 502-1 FAX: +49 7361 502-674 mail: ir@shw.de WWW: http://www.shw.de sector: Automotive Equipment ISIN: DE000A1JBPV9 indexes: stockmarkets: free trade: Düsseldorf, Stuttgart, regulated dealing/prime standard: Frankfurt language: English
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