Wilhelmsen Nets $170 Million From Sale of Stake in Glovis

Wilhelmsen Nets $170 Million From Sale of Stake in Glovis

Norway’s Wilh. Wilhelmsen ASA said it will use the $170 million proceeds from the sale of a 2.5 percent stake in Glovis, the logistics arm of Korean auto maker Hyundai, to invest in new ships.

The deep sea car carrier, which will book a net gain of about $135 million from the transaction, still retains a 10 percent stake in Glovis.

“Our relationship with the Hyundai Group is strong and the shareholding in Hyundai Glovis continues to be long-term and strategic,” said Jan Eyvin Wang, president and CEO of Wilh. Wilhelmsen ASA.

“However, given the strong development in the share price we have agreed with our partner t sell a small part of our shares in the company,” he said.

“The sale strengthens our balance sheet and gives us the financial flexibility to continue to invest in new tonnage and grow our logistics activities,” Wang said.

Wilhelmsen, which controls a fleet of 141 car carriers through its operating companies, booked an operating profit of $117 million in the second quarter, up 13 percent on the previous three months on a 3 percent increase in revenue to $734 million.

Contact Bruce Barnard at brucebarnard47@hotmail.com.