Norsk Hydro has signed an agreement to sell a 20.86% non-strategic ownership stake in Norwegian power production company SKS Produksjon to Salten Kraftsamband for NOK1bn ($190m).

Hydro CFO Jorgen Arentz Rostrup said the stake in SKS has been a minority position and a financial asset for Hydro, which yielded an annual dividend of approx NOK30m ($5.59m) over the past two years.

Rostrup also said that the divestment has no effect on the company’s primary aluminium production in Norway.

Salten Kraftsamband, which has nine power stations in Norway, will wholly own SKS Produksjon on completion of the transaction, which is expected today.