Disposal update

RNS Number : 5345G

Elektron Technology PLC

07 June 2013

 



7 June 2013

Elektron Technology plc

Conditional disposal of Total Carbide Limited - update

Elektron Technology plc (AIM: EKT, "Elektron" or the "Group"), the global technology group), has exchanged contracts on the 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 £1.23 million (net) is in cash and £1.05 million is in shares in Versarien ("the Consideration Shares"). The consideration represents the approximate net asset value of 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.  The disposal of Total Carbide remains conditional upon the admission of Versarien to trading on AIM ("Admission") which is expected in due course.  On completion of the disposal, Elektron will hold approximately 10.3% of Versarien's share capital following Admission.

Approximately £0.7 million of Consideration Shares are required to be held by Elektron for a minimum period of 6 months and will be held as an investment. There are no restrictions on the balance of £0.35 million Consideration Shares. The cash proceeds of the disposal will be used by Elektron to reduce borrowings.

The proposed disposal is part of the Group's rationalisation of its portfolio, focusing its investment in its core brands and key segments of Connectivity and IMC (Instrumentation, Monitoring and Control). Elektron is continuing to transform its business, building an innovation-led technology company through its strategy of innovation, streamlining operations, investing in infrastructure, people and capabilities, as well as focusing resources on key brands and product offerings.

Further details on Versarien and its Admission to AIM can be found at 

www.londonstockexchange.com/exchange/prices-and-markets/stocks/new-and-recent-issues/new-recent-issue-details.html?issueId=8837

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 precision engineered products which enable two of the most important technology areas of the always-on, networked economy: Connectivity and Instrumentation, Monitoring and Control ('IMC'). 

The Group has a broad portfolio of brands which 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.

 

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