Sells block of Kitron shares
KONGSBERG divested itself of 10 000 000 shares in Kitron ASA today. The shares were sold at a price of NOK 5,10. Prior to the sale, KONGSBERG owned 33 914 292 shares, corresponding to 27.01 per cent of the shares and votes in Kitron ASA. After the sale, KONGSBERG owns 23 914 292 shares in Kitron ASA, corresponding to 19 per cent of the shares and votes in the company. The sale entails a book profit for KONGSBERG of MNOK 31 pre tax.
KONGSBERG merged its electronics activities with the former Sonec in 1998. Sonec was subsequently merged with Kitron. KONGSBERG's investment in Kitron has been long-term and based on the desire to develop Kitron as an enterprise and a subcontractor to KONGSBERG. However, Kitron falls outside the Group's core activities, and KONGSBERG does not wish to consolidate Kitron into its accounts. By reducing its stake to less than 20 per cent, KONGSBERG will no longer treat Kitron as an associated company in its consolidated accounts. Moreover, the sale of the shares will enhance the liquidity of Kitron shares.
KONGSBERG remains the second largest shareholder in Kitron, even after the sale. Kitron will continue to be KONGSBERGs most important subcontractor of electronics, and KONGSBERG will continue to occupy a seat on Kitron's Board of Directors. In conjunction with other major shareholders in Kitron, KONGSBERG will help develop the company, preferably in a broader industrial context.