Telecoms Businesses Sold for $153m
Cookson Group PLC
4 May 2000
COOKSON SELLS TELECOMS BUSINESSES FOR $153 MILLION
Cookson Group plc ('Cookson'), the international
materials technology company, announces that it has
disposed of the businesses constituting its Telecoms
sector for $153 million (£98 million). NEPTCO has been
sold to a venture capital consortium led by
Cornerstone Equity Investors and agreement has been
reached to sell the assets of FOCAS to Alcoa Fujikura
Limited. NEPTCO manufactures tapes, composites and
fibre optic cable strength elements and FOCAS
manufactures aerial fibre optic cable.
The sale of FOCAS does not include its investment in a
revenue sharing venture with Electric Lightwave, Inc.
('ELI') in respect of a fibre optic cable network in
the USA. This investment will be retained by Cookson
and revenue will begin to be generated from this
venture during 2000. The net tangible asset value of
Cookson's investment in the ELI project amounted to
£28 million at 31 December 1999.
For the 12 months ended 31 December 1999, the Telecoms
sector, excluding the ELI venture, had sales of £101
million and operating profit of £9.4 million. The
net tangible asset value of these businesses at 31
December 1999 was £55 million, and the goodwill
previously written-off on original acquisition
amounted to £36 million.
Consideration is payable in cash upon completion.
Completion of NEPTCO has now taken place and the
proceeds have been used to reduce Group borrowings.
The completion of FOCAS is expected to take place at
the end of this month.
Commenting on the sale, Stephen Howard, Group Chief
Executive of Cookson said:
'The disposals of NEPTCO and FOCAS represent a
substantial part of our programme to divest non-core
activities. This enables Cookson to focus on its
three core markets - electronics, ceramics and
precious metals - where we have demonstrable
leadership positions and clear prospects for growth.
The combined value of the proceeds from the disposals
of NEPTCO and FOCAS and the retention of the ELI
investment make these transactions particularly
attractive for Cookson.
The company will issue a trading statement after the
Annual General Meeting, to be held today at 11.30am'
For further information, please contact:
Stephen Howard Dennis Millard
Group Chief Executive Group Finance Director
Cookson Group plc Cookson Group plc
London WC2N 6HJ London WC2N 6HJ
Tel: 020 7766 4500 Tel: 020 7766 4500
Fax: 020 7747 6600 Fax: 020 7747 6600
e-mail: stephen_howard@cookson.co.uk e-mail: dennis_millard@cookson.co.uk
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