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Skanska Divests its Share in LaGuardia Gateway: A Strategic Move with Sweeping Implications
Stockholm, January 12, 2024 — Amidst a rapidly evolving landscape for construction companies worldwide, one of the latest sweeping changes came from Swedish construction major, Skanska. On December 6, 2023 Skanska signed Sale and Purchase Agreements for its 32% ownership stake in LaGuardia Gateway Partners LLC, based in New York, USA. Announced initially in December, this pivotal transaction has now been completed successfully.
Government Approvals and Financial Aspects of the Transaction
All mandatory approvals from the government were obtained by the end of December 2023, facilitating an efficient and seamless transaction process. The sale has been recorded under the category of 'Central stream' in the fourth fiscal quarter of 2023. Importantly, the transactions come with an adjustment in the sales price, accounting for distributions received since the contracts were initially signed.
Economic Significance of the Transaction
The net sales proceeds, following deduction of transaction costs and miscellaneous items, stands at USD 112 million, approximately equivalent to SEK 1.2 billion. The settlement of the sales price was done in two nearly equal tranches. The first installment took place in December 2023 followed by the second leg of the payment in January 2024, thereby resulting in the closure of the deal.
The Market Impact and Broader Perspective
Strategic Impact
The successful completion of this sale provides Skanska with the strategic flexibility to allocate its financial resources more opportunistically. This divestment comes at a time when global construction markets are witnessing a rapid shift, driven by multiple key factors including escalating material costs, sustainability demands, and innovative, technology-driven practices that are redefining traditional norms.
Financial Perspective
As the world slowly moves towards economic normalization, the financial implications of this divestment hold substantial relevance. With a considerable cash inflow of roughly USD 112 million, Skanska is better equipped to manage its capital structure, increase corporate resilience, and pursue growth opportunities more dynamically.
For any further elucidation, the company's leadership is available to the media and public. Reach out to Magnus Eriksson, Managing Director of Asset Management at +01 703 629 06 68, or Jacob Birkeland, Head of Media Relations and Public Affairs, at +46 76 899 7269. You may also contact the direct line for media at +46 (0)10 448 88 99.
Past press releases and related material can be located at www.skanska.com.