Vard acquires minority stake in two subsidiariesCompany News // May 30, 2017
The Board of Directors of Vard Holdings Limited has announced that the company’s wholly-owned subsidiary Vard Group AS has acquired the remaining 4.85% stake in Vard Promar SA from an unrelated third party, PJMR Empreendimentos Ltda (PJMR), thereby making Vard Promar SA a wholly-owned subsidiary of Vard Group AS. This follows an amicable termination of the partnership with PJMR and the company now gains 100% control of its operations in Brazil.
The consideration for the transaction is BRL 5.5 million, satisfied in cash. The book value and the net tangible asset value of the transaction is negative BRL 17.6 million. The valuation is based on previously agreed put options entered into in connection with the previous increase in the company’s shareholding in Vard Promar SA, announced on 5 August 2016.
Vard Group has also acquired the remaining 30% stake in Vard Engineering Brevik AS from an unrelated third party, thereby making Vard Engineering Brevik AS a wholly-owned subsidiary of Vard Group AS. This acquisition has been made pursuant to an option agreement entered into at the time of the original acquisition of the majority stake, announced on 22 June 2012. The acquisition is in line with the group’s strategy of streamlining its portfolio.