Odense Steel Shipyard sells Estonian subsidiary

Odense Steel Shipyard Ltd. A/S (Lindø Shipyard) has entered into an agreement on the sale of Loksa Laevatehase AS (Loksa Shipyard) to a consortium consisting of AS Frelok, Crown Solution OÜ and OÜ Stako Diler. The consortium is based in Estonia and consists of experienced players from the Baltic steel industry.
Since Lindø Shipyard took over the Loksa Shipyard in 1994, significant investments in technology and streamlining of the production capacity of the Estonian yard have been made. Today, Loksa Shipyard employs approx. 550 staff, and has among others supplied hatch covers and steel sections to Lindø Shipyard and other European yard groups. It is the intention of the new owner that Loksa Shipyard will enter into a co-operation with the consortium partners and remain a significant player within the steel industry.
Lindø Shipyard’s orders at Loksa Shipyard will be delivered according to the original plan.
The transaction will be covered by Estonian competition law and is conditional on obtaining approval by the relevant authorities. The transaction is expected to be complete by the end of October 2009.
The parties do not wish to disclose the sale price.