Last checked at 30 Jun 2016 07:00
30 June 2016
Avingtrans Plc
("Avingtrans" or the "Company" or the "Group")
Update on Return of funds to Shareholders following disposal of Aerospace Division
Avingtrans (AIM:AVG), a manufacturer of critical components and associated services to the global energy and medical sectors, is pleased to provide an update to shareholders on the proposals for the return of capital to shareholders following the disposal of the Aerospace Division.
As the Company announced on 27 May 2016, following the disposal of the Aerospace Division, the Company had net cash in excess of £47 million. The Board is now pleased to announce that it intends to return almost £28 million to shareholders by way of a Tender Offer ("the Offer"), representing 100p for each ordinary share in issue. The Company currently has 27,754,564 ordinary shares in issue.
The Board expects to announce its final results for the year ended 31 May 2016 during September 2016 and at the same time post a circular to shareholders setting out further terms of the Offer, and also seeking the necessary shareholder approvals.
The balance of the net proceeds will be used to pursue the Groups new strategy to invest in the Energy and Medical markets served by its Metalcraft and Maloney Metalcraft businesses, and more specifically to strengthen Metalcraft's position in the nuclear sector and to pursue other related opportunities in the engineering sector.
Steve McQuillan, Chief Executive Officer of Avingtrans plc, commented "I am pleased to be able to provide more detail on the return of substantial value to shareholders while also reiterating our intention to make additional investment and acquisitions in the Energy and Medical businesses. The Board believes there are several exciting prospects which have the potential to deliver significant further value for shareholders."
Enquiries:
Avingtrans plc Steve McQuillan, Chief Executive Officer Stephen King, Chief Financial Officer
| Tel: 01159 499 020 |
Numis Richard Thomas (Corporate Finance and Nominated Adviser) Tom Ballard (Corporate Broking)
| Tel: 0207 260 1000 |
Newgate (Financial PR) Adam Lloyd Ed Treadwell | Tel: 020 7653 9850
|
About Avingtrans
Avingtrans plc is engaged in the provision of highly engineered components, systems and services to the energy, medical and traffic management industries worldwide.
Energy and medical, engaged in the design and manufacture of safety critical equipment for the energy, medical, science and research communities, including oil and gas extraction and processing equipment, nuclear process plant, machined and fabricated pressure and vacuum vessels and components. Also, design and manufacture of fabricated poles and cabinets for roadside safety cameras and rail track signalling.
The strategy of the group, is to "buy and build" in regulated engineering niche markets, where we can see potential consolidation opportunities, which can lead to significantly increased shareholder value over the medium to long term