Engineering
Date: Friday 27 Dec 2013
LONDON (ShareCast) - HMS Group, which manufactures pumps and compressors, has agreed to sell its subsidiary's stake in Trest SKMN to allow the group to focus on its core markets.
Chief Executive Officer of HMS Group Artem Molchanov decribed the transaction as a "reasonable deal".
HMS Group subsidiary Hydromashservice will sell its 67.29% stake in Trest SKMN for the nominal value of the shares related to the repayment of SKMN's indebtedness.
SKMN became part of HMS Group in 2007, and specialises in technological and infrastructure facilities, as well as construction, installation and engineering services for oil & gas.
HMS explained that as a result of the transaction, it will secure repayment of the recoverable portion of SKMN’s indebtedness, which will free up capital resources and allow management of HMS Group to focus on development of the core business segments.
Molchanov said: "Russian market for oil and gas construction has been experiencing downward trends and showing no visible signs for coming recovery. Unfavorable market conditions negatively affect financial results of the construction assets within HMS Group.
"[...] Construction in oil and gas sector has never been a priority for HMS. Our construction assets were acquired for providing auxiliary services under large-scale integrated projects for oil and gas majors. Now we intend to focus on our core markets - flow control machine-building and engineering - so we consider the disposal of SKMN to be a reasonable deal."
NR
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Currency | US Dollars |
Price | $ 3.50 |
Closing Price Change | $ 0.00 |
% Change | 0.00 % |
52 Week High | $3.50 |
52 Week Low | $3.50 |
Volume | 0 |
Shares Issued | 23.43m |
Market Cap | $81.99m |
RiskGrade | 261 |
No dividends found |
Time | Volume / Share Price |
0 @ $0.00 |
Chair | German A. Tsoy |
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