off-the-wire

Sandvik buys majority stake in China-based Suzhou Ahno

Kitco Media
By Reuters
Published:
Updated:
Reuters
Sandvik buys majority stake in China-based Suzhou Ahno teaser image

Sweden’s Sandvik said on Tuesday it has agreed to buy a majority stake in China-based Suzhou Ahno Precision Cutting Tool Technology.

Sandvik, which already owns a 12.4% stake in the company, said in a statement it will through the deal raise its stake to 72.4%, and that the enterprise value for the acquired stake is 189 million euros ($202 million).

The impact on Sandvik’s earnings per share, excluding non-cash amortization effects from business combinations, will be positive, it said.

Sandvik is buying the stake from current majority owner Ningbo Baosi Energy Equipment and related parties.

($1 = 0.9374 euros)

(By Anna Ringstrom; Editing by Stine Jacobsen)

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