Burmah Castrol PLC
3 November 1999
BURMAH CASTROL SELLS BELGIUM FUELS BUSINESS
Burmah Castrol plc ('Burmah Castrol'), the international
specialised lubricants and chemicals group, announces the sale
of its Belgian fuels business, Burmah NV, to the Group
Octa+/Avia, an independent fuels marketing operation, for
approximately BEF 179 million (£2.9 million), in cash. This
disposal is consistent with Burmah Castrol's ongoing programme
to divest non-core businesses.
The business had a turnover (net of duties) in 1998 of BEF760
million (£12 million) and an operating profit of BEF18 million
(£0.3 million). After adding back acquisition goodwill of
BEF271 million (£5 million), there will be an exceptional loss
to Burmah Castrol of approximately BEF300 million (£5 million)
arising from the transaction, which is subject to approval by
the Belgian competition authorities. Proceeds from the
disposal will be used to reduce Burmah Castrol's net
borrowings.
Tim Stevenson, chief executive of Burmah Castrol, comments:
'This disposal is in line with our strategy to create
shareholder value through investment in our core businesses
and the divestment of businesses where we do not believe we
can add significant value. Other recent disposals include our
Irish Fuels, Timber Treatment and Aluminium businesses.
In the past 18 months, the value of disposals has amounted to
some £36 million. In the same period, we have continued to
invest by making a number of acquisitions to strengthen our
core businesses, such as Castrol Industrial, Printing,
Investment Casting and Releasants.'
For further information, please contact:
James Alexander, Corporate Affairs director,
Burmah Castrol plc 01793 452006
Sharon Ostaszewska, External Relations,
Burmah Castrol plc 01793 452946
Rachel Hirst/Harriet Keen,
Hogarth Partnership Limited 0171 357 9477
A copy of this release plus further company information is
available on our website: www.burmah-castrol.com
Notes to Editors:
Note 1
Burmah Castrol businesses market specialised lubricant and
chemical products and services on a worldwide basis. The
group has a turnover close to £3 billion and operating profits
of £255 million in 1998. It has over 150 subsidiaries
operating in some 55 countries and employs around 20,000
people. Burmah Castrol is based around a series of
international businesses, each focused on the specific
requirements of its own market place but sharing common
characteristics. Four of the group's businesses trade under
the Castrol brand name and the remaining businesses operate in
speciality chemicals.
Note 2
The Belgian fuels business consists of some 115 retail sites,
of which 47 are company owned or leased.
Note 3
In 1995, Burmah Castrol sold its UK fuels business to The
Frost Group for £83 million and since then, has sold its
Chilean, Turkish, Swedish and Irish fuels businesses for a
total consideration of approximately £100 million. Burmah
Castrol's remaining fuels business is in Australia.
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