Checkit Regulatory News (CKT)

1 Feb 2007 07:01

Elektron PLC01 February 2007 For immediate release 1 February 2007 Elektron Plc Disposal of Freehold Properties Following completion of the purchase of the entire share capital of HowleHoldings Plc ("Howle") announced on 18 December 2006 for a consideration of£3,077,000, Elektron Plc ("Elektron") announces that on 31 January 2007 itexchanged contracts for the sale and leaseback of four of the five freeholdfactories owned by Howle for a cash consideration of £4,415,000 with annualrentals of £343,500. It is anticipated that the transaction will not materiallyaffect earnings. Completion is to take place within 4 weeks. These properties had previously been included in Howle's published interimaccounts as at 31 March 2006 at a valuation of £4,685,000 and comprised premisesin Tenbury Wells, Princes Risborough and Clacton. The proceeds will be used toreduce Howle debt by approximately £2.1 million with the remainder added to cashreserves. The purchaser is Panther Securities Plc, which together with its Chairman Mr.Andrew Perloff and associates, holds 13,260,909 ordinary shares of 5p each inElektron representing 15.29% of the issued share capital and is consequently arelated party. The Directors of Elektron, having consulted with its Nominated Adviser, BeaumontCornish Limited, consider the terms of the transaction to be fair and reasonableinsofar as its shareholders are concerned. For further information, please contact: Chris Leigh Elektron Plc Tel: 01708 677269 Michael Cornish Beaumont Cornish Limited Tel: 0207 628 3396 This information is provided by RNS The company news service from the London Stock Exchange