ShawCor selling stake in Socotherm Brasil joint venture to partner

TORONTO, Cananda – ShawCor Ltd. (TSX:SCL) said Wednesday it has signed a deal to sell its joint-venture interest in Socotherm Brasil to its partner, Tenaris.

The company said it expects to realize US$30 million in net proceeds, plus the potential for more based on future performance.

Socotherm Brasil operates a pipe coating facility which is managed by Tenaris in Brazil.

The company said the sale was part of a strategy to focus on operations it manages and controls.

ShawCor expects to record an after tax loss of approximately $4 million on the sale in its fourth quarter.

“Following the sale, ShawCor will continue to serve Tenaris’ global pipe coating needs and the Brazilian pipe coating market from its global pipe coating plant network,” the company said in a statement.

ShawCor has over 75 manufacturing and service facilities around the world.