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LONDON (Alliance News) - Cohort PLC said Thursday that it had agreed to sell the Space division of its SEA subsidiary to Thales Alenia Space UK Ltd for up to GBP6.5 million.
Cohort will sell the business for an initial cash consideration of GBP5 million. The company said that it may receive an additional cash payment of GBP1.5 million from a price adjustment based on Thales Alenia Space's working capital position at the time of completion.
It expects to complete the sale on May 31.
The division saw revenues of GBP5.1 million for the year to end-April, 2013 and a small operating loss.
Cohort will write down goodwill of GBP2.0 million on the sale, which it said will lead to a non-cash exceptional loss of GBP1.5 million in the year to end-April 2014. The disposal is expected to have a "small" hit on earnings for the year to end-April 2015.
Cohort said that the sale of the division allows it to focus on its defence and transport markets, and free up resources and funding for it pursue its growth strategy. It will use cash from the disposal for investment and potential acquisitions.
Shares in Cohort were trading up 3.5% at 171.75 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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