Conditional Disposal of Total Carbide Limited

RNS Number : 9516Z

Elektron Technology PLC

14 March 2013

 

Elektron Technology plc

Conditional Disposal of Total Carbide Limited

Elektron Technology plc (AIM: EKT, "Elektron" or the "Group"), the developer of fast moving engineered products with market leading positions in Connectivity and IMC (instrumentation, monitoring and control),has agreed, subject to contract, to the conditional sale of its subsidiary Total Carbide Limited ("Total Carbide") to Versarien plc ("Versarien"), for a total consideration of approximately £2.3 million of which approximately £1.6 million would be in cash and £0.7 million would be in shares in Versarien. The consideration would be subject to adjustment based on the net asset value of Total Carbide at completion.

Notification of Versarien's intended admission to trading on AIM ("Admission") has been announced.  Admission is conditional upon, inter alia, a fundraising by Versarien (the "Fundraising").  Completion of the disposal of Total Carbide is conditional on the Fundraising and Admission. Further details on Versarien and the intended Admission can be found at http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11517519

Total Carbide

Total Carbide, a wholly owned subsidiary of Elektron, is a leading European manufacturer of sintered tungsten carbide components for a number of key industries and supplies several major European companies.  Itcurrently forms part of the Group's Materials segment.  The audited accounts of Total Carbide for the year ended 31 January 2013 show that this subsidiary achieved turnover of £3.8 million and profit on ordinary activities before taxation of less than £0.1 million.  On a proforma basis, adjusting for certain assets and liabilities to be retained by the Group, the net assets of Total Carbide at 31 January 2013 were approximately £2.25 million.

Details of the proposed transaction

The consideration of £2.3 million before transaction costs would be satisfied as to £1.6 million in cash and £0.7 million in Versarien ordinary shares to be issued at the fundraising placing price. These shares would be required to be held for a minimum period of 6 months and would be held as an investment. The cash proceeds of the disposal would be used to reduce borrowings.

The proposed disposal is in line with the Group's strategy of streamlining operations and focusing investment on its core areas of Connectivity and IMC (instrumentation and monitoring and control).  Elektron will continue to focus on creating an innovation led technology company with a world class infrastructure and a portfolio of products with unique selling points, protected through intellectual property rights.

A further announcement will be made in due course as appropriate.

Enquiries:

Elektron Technology  www.elektron-technology.com	[phone]
Keith Daley - Chairman
Noah Franklin - Chief Financial Officer
finnCap	[phone]
Ed Frisby/ Rose Herbert - Corporate Finance
Simon Starr/Victoria Bates - Corporate Broking
College Hill	[phone]
Adrian Duffield/Rozi Morris

Notes to Editors

Elektron Technology is a global designer and manufacturer of fast moving engineered products, the precision engineered components that enable two of the most important technology areas of the always-on, networked economy: Connectivity and Instrumentation, Monitoring & Control (IMC).

The Group has a broad portfolio of products that are recognised leaders in their markets, playing a critical role in many industries from underwater construction to food preparation, semiconductor manufacture to emergency vehicle systems. The Group's products are sold worldwide to over 7,000 customers, around 100,000 end-users, and used in all seven continents and in space.

Elektron Technology is headquartered in Cambridge and traded on the AIM market of the London Stock Exchange.

For further information please visit www.elektron-technology.com 

 

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