Scana sells its shares in Scana Korea Hydraulic and continues cooperation with partnership agreement

02 May 2023 12:45 CEST

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

Skarpenord in brief
Skarpenord is one of the world’s leading suppliers of valve remote control
systems for shipping and the oil and gas industry.

Scana in brief
Scana is a listed industrial owner company in the ocean industries creating
value through active ownership in market-leading portfolio companies. Our vision
is to accelerate decarbonisation of the maritime and offshore sector by being a
driving force in electrification and emission reduction solutions. Scana’s
portfolio companies have a solid innovation and commercialisation history based
on core competence in selected niches. Scana is headquartered in Bergen and has
around 350 employees. www.scana.no

More information:
Access the news on Oslo Bors NewsWeb site