27 Apr 2016 07:00
27 April 2016
BRITISH POLYTHENE INDUSTRIES PLC
COMPLETION OF SALE OF CHINESE SUBSIDIARY & TRADING UPDATE
Sale of Chinese Subsidiary
British Polythene Industries PLC (BPI) today confirms that it has completed the sale of its PRC subsidiary BPI China (formerly Xinhui Alida), announced on 27 January 2016, to Amcor (China) Investment Co., Ltd, a subsidiary of Amcor, the Australian based packaging group (the Disposal).
Total consideration is now estimated to be approximately £9.7 million and the initial consideration of £6.4 million has been received. The balance will be paid in instalments following the agreement of closing working capital and satisfaction of certain post completion arrangements. The working capital, estimated at £2.0 million, is expected to be payable in June 2016, with instalments of £0.3 million in the second half of 2016 and the final instalment of £1 million payable early in 2017. The proceeds will be used to reduce borrowings.
The gain on the Disposal, which will be included in the accounts for year ended 31 December 2016, is now estimated to be over £5.0 million.
Trading Update
Trading performance in the first quarter has been strong and ahead of management's expectations, having benefited, in particular, from lower energy costs and favourable currency translation effects.
Ends
Enquiries:
John Langlands | |
Chief Executive | 01475 501000 |
Charlie Palmer/Karen Tang FTI Consulting | 0203 727 1000 |