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Blom ASA to divest Danish subsidiary

Norway: Blom ASA signed an agreement to divest its Danish subsidiary BlomInfo A/S to the Danish engineering and consulting company NIRAS. The transaction comprises the activities of BlomInfo in Denmark and certain projects for mapping and property registration conducted outside Denmark. Blom will receive DKK 19.4 million as compensation for the equity in BlomInfo and working capital provided by Blom to BlomInfo. After the completion date, Blom may receive up to an additional DKK 4.5 million as further repayment of the working capital in BlomInfo. The transaction is expected to be completed by the end of this week. The transaction does not comprise the shares hold by BlomInfo A/S in PT Blom Nusantara, Indonesia (95 percent), Blom Romania SRL, Romania (100 percent), Blom Bulgaria EODD, Bulgaria (100 percent), BlomInfo Polska Sp.zo.o., Poland (100 percent), Blom Kosova Shpk, Kosovo (100 percent) and BlomInfo Ukraine Ltd., Ukraine (51 percent), the ownership of which will remain with Blom.
BlomInfo A/S had 42 employees as of September 30, 2011. The transaction decreases the funding requirements and increases the liquidity reserves of Blom Group and reduces the operational and credit risk exposure of Blom Group in geographical areas which have proven to be challenging.
Source: blomasa.com & www.niras.com