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(Alliance News) - Croma Security Solutions Group PLC on Tuesday said it will sell its subsidiary Vigilant Security (Scotland) Ltd to M&W Security Ltd for GBP6.5 million.
The Fareham, England-based security services provider said the sale includes an intercompany balance of GBP1.1 million repayable to Croma. The GBP6.5 million consideration represents roughly 92% of Croma's GBP7.1 million market capitalisation on Friday.
Shares in Croma were up 12% at 53.00 pence each in London on Tuesday morning, giving it a market capitalisation of GBP7.9 million.
Croma said the proceeds from the sale will be used to support the successful nationwide roll-out of the company's chain of modern security services.
Back in December, Croma announced its plans to dispose of Vigilant to refocus on developing its high-margin and cash-generative Locks and Systems businesses. Croma also added that Vigilant is being acquired by two former Croma directors, Sebastian Morley and Paul Williamson, who stepped down from the board in December to prepare a bid. Together, they own M&W Security, a London-based security services provider.
Croma Chief Executive Officer Robert Fiorentino on Tuesday said: "'We are delighted to be announcing the proposed sale of Vigilant, which is a good business but no longer fits with the future of our group. The funds from the sale will accelerate our ability to drive our Locks and Systems business through the roll-out of our modern security centres."
By Sabrina Penty, Alliance News reporter
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