FNMA

Ferronordic sells Russian business for $126 mln, shares soar 60%

Adds quote, share price, detail

OSLO, Dec 23 (Reuters) - Sweden's Ferronordic FNMA.ST, which sells and services construction equipment and trucks, said on Friday it had divested its Russian business in a deal worth 1.32 billion Swedish crowns ($126.08 million).

Ferronordic's shares rose more than 60% by 0915 GMT, hitting a nine-month high of 83.5 crowns.

The company used approximately 230 million crowns to repay debt to the sold Russian subsidiaries, while the remaining cash had been deposited in euros into the group's account in Austria, giving it a cash inflow equivalent to 1.09 billion crowns.

"Ferronordic's other operations in Germany and Kazakhstan are not directly affected by the transaction," the company said.

($1 = 10.4698 Swedish crowns)

(Reporting by Terje Solsvik, editing by Stine Jacobsen)

((terje.solsvik@thomsonreuters.com; +47 918 666 70))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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