Norwegian group Scandinor AS
has signed a contract with Romania's main privatization agency, FPS, to acquire a majority stake in local shipyard Santierul Naval Braila. Scandinor is to acquire the State Ownership Fund's (FPS) full stake of 69.52 percent in Santierul Naval in a $9.3 million deal including investments spread over five years, FPS executive manager Alin Giurgiu said
. He said the acquisition price represented around one third of the value of the deal, with investments worth some $6 million focusing on technology upgrades and environmental protection.
Scandinor, Giurgiu said, will also take over Santierul Naval's debts, amounting to around $11.4 million, mainly to banks and suppliers.
The yard designs, builds and repairs small- and medium-tonnage river- and sea-going ships. The shipyard ended 1999 with a net profit of around $205,000. Comparative data for 1998 were unavailable.
Scandinor has been present in Romania since
1993 in various shipping-related businesses.