SSAB sells 25 per cent holding in Cogent Power Limited to Corus
04.9.2006 11.18 CEST 6 min luettu
SSAB has sold its minority holding in the UK electrical steels company Cogent Power Limited to Corus, its majority owner. The purchase price amounts to GBP 18 million.
"Following exercise of a put option we have sold our 25 per cent holding in Cogent Power to Corus. Since the synergies with other operations within the Group are marginal, the sale is a natural step towards concentrating upon our niche strategy in high strength steels", says Olof Faxander, the President and CEO of SSAB in a comment to the deal. Cogent Power was formed in 1991 through a merger of SSAB’s and British Steel's respective electrical steels operations and is one of the largest producers of electrical steels in Europe. Prior to the deal, 75 per cent of Cogent Power was owned by Corus and 25 per cent by SSAB. The operations are based in Wales, Sweden and Canada. Notes to editors: Cogent Power’s Laminations Division has recently been sold and so is no longer part of Cogent Power Limited.