ShawCor sells stake in Socotherm Brasil joint venture to partner
Company said it expects to realize US$30 million in net proceeds.
TORONTO – ShawCor Ltd. has signed a deal to sell its joint-venture interest in Socotherm Brasil to its partner, Tenaris.
The company said it expects to realize US$30 million in net proceeds, plus the potential for more based on future performance.
Socotherm Brasil operates a pipe coating facility which is managed by Tenaris in Brazil.
The company said the sale was part of a strategy to focus on operations it manages and controls.
ShawCor expects to record an after tax loss of approximately $4 million on the sale in its fourth quarter.
The company has over 75 manufacturing and service facilities around the world.
©The Canadian Press