ShawCor Ltd announced an agreement for the sale, subject to regulatory approval, of its Socotherm division’s joint venture interest in Socotherm Brasil to its joint venture partner, Tenaris.
Socotherm Brasil operates a pipe coating facility which is managed by Tenaris and which is located at the Confab welded pipe mill in Pindamonhangaba, Brazil.
From the sale, ShawCor expects to realize net proceeds of approximately US$30 million, with a further potential earn out based on future performance. In the fourth quarter of 2013, ShawCor expects to record an after tax loss of approximately $4 million on the sale.
The sale of Socotherm’s joint venture interest in Socotherm Brasil is consistent with ShawCor’s strategy to focus its pipe coating investments on operations it manages and controls. Following the sale, ShawCor will continue to serve Tenaris’ global pipe coating needs and the Brazilian pipe coating market from its global pipe coating plant network.
Press Release, December 05, 2013