Completion of Sale of Elektron Technology
Elektron Technology Plc
(AIM: EKT, "Elektron" or the "Group")
Completion of sale of Elektron Technology UK Limited (which holds the Bulgin business)
Elektron Technology Plc, is pleased to announce that, further to its announcements of 31 July 2019 and 3 September 2019 in respect of the Proposed Transaction, the Proposed Transaction is now complete and the Group has received all monies due from Equistone Partners Europe Limited.
Following adjustments for net debt, debt-like items and working capital, the total consideration received was £104.7 million. After deducting the expenses incurred in connection with the Proposed Transaction and the settlement of the LTIP liability, the net proceeds receivable by the Group are approximately £94 million.
As previously announced, the Board expects to return approximately £81 million to shareholders by way of a tender offer for two ordinary shares for every three ordinary shares held at a price of 65 pence per ordinary share (the "Tender Offer"). A further circular and notice of general meeting in relation to the Tender Offer are expected to be issued shortly.
Following completion, John Wilson will remain as CEO of ETUK and will therefore step down as a director of all Group companies other than Elektron Technology Plc where he will become a Non-Executive Director.
Keith Daley, Executive Chair of Elektron Technology commented:
"The completion of the disposal of Bulgin business marks another milestone for the Group. We are now focused on Checkit's real-time operations management software. It has been an absolute pleasure to work with John over the past 11 years. During that time the Group has been transformed into an engine for the creation of shareholder value. The achievements are in no small way due to him."
Unless otherwise defined, capitalised terms used in this announcement have the meanings given to them in the announcement and Circular released by the Group on 31 July 2019.
For further enquiries:
Elektron Technology plc +44 (0) 1223 371 000
Keith Daley (Executive Chairman)
Andrew Weatherstone (Chief Financial Officer & Company Secretary)
Yellowstone Advisory (Investor Relations)
Alex Schlich +44 (0) 7710 164 120
N+1 Singer (Nominated Adviser & Broker)
Shaun Dobson / George Tzimas (Corporate Finance) +44 (0) 20 7496 3000
Rachel Hayes (Corporate Broking)
Notes to Editors:
Checkit's real-time operations management software makes organisations smart, safe and efficient. Our products use Internet of Things ("IoT"), mobile and cloud technologies to ensure our customers get the best out of their mobile teams, processes and buildings. Checkit users operate in many sectors including Retail, Hospitality, Healthcare, Real Estate Management and Manufacturing. Checkit is headquartered in Cambridge, UK with its Operations Centre in Fleet, UK and a Sales and Service office in California, USA. https://www.checkit.net
END
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