SDVKY Sandvik AB (PK)

By Colin Kellaher

Sandvik AB (SAND.SK) on Monday said it agreed to sell a 70% stake in its drilling and completions operations related to the oil and gas industry to private-equity firm Blue Water Energy and privately held owned Nixon Energy Investments for 900 million Swedish krona ($92.7 million).

The Stockholm industrial-equipment supplier said the divestiture triggers a SEK3.9 billion write-down of goodwill and other intangible assets, which it will record in the fourth quarter.

Sandvik said it will keep a 30% stake in the operations and retain ownership of the mining-related portion of its drilling and completions arm.

The company said it expects the transaction will generate a positive cash-flow impact of roughly SEK700 million.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

October 28, 2019 13:56 ET (17:56 GMT)

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