Checkit Regulatory News (CKT)

10 Aug 2007 07:01

Elektron PLC10 August 2007 FOR IMMEDIATE RELEASE 10 August 2007 ELEKTRON PLC ("Elektron" or the "Company") Disposal of Sifam properties Following completion of the purchase of the entire share capital of SifamInstruments Limited ("Sifam") announced yesterday for a cash consideration of£2 million (subject to adjustment), the Board of Elektron announces that it has exchanged contracts for the sale and leaseback of the two freehold factoryproperties owned by Sifam (the "Sifam Properties") for a cash consideration of£2,336,250. Completion has already taken place on one of the properties. The proceeds from the sale of the other property totalling £938,500 will be receivedonce certain registration documents have been processed by the Land Registry. The Sifam Properties had previously been included in Sifam's audited accounts asat 2 December 2006 at a value of £883,000 and comprise 68,000 square feet ofindustrial premises in Torquay. The Directors have received a third party open market valuation of the SifamProperties as at 3 August 2007, prepared by Pennycuick Collins inc Ralph &Janes, Chartered Surveyors, ("Pennycuick Collins") in accordance with theguidelines contained within the RICS Appraisal and Valuation Manual (5thEdition published 1 May 2003). Pennycuick Collins have confirmed that thepurchase price mentioned above is fair and reasonable. Under the two 10 year leases the aggregate rental payable by Elektron is£215,000 per annum following a 12 month rent free period. The proceeds from thedisposal of the Sifam Properties will be used to reduce Elektron Group debt. TheDirectors anticipate that the transaction will not materially affect earnings(excluding negative goodwill). The purchaser of the Sifam Properties is Panther Securities Plc ("Panther"),which together with its Chairman Mr Andrew Perloff and associates, holds13,260,909 ordinary shares of 5p each in Elektron representing 15.3% of theissued share capital. Accordingly, the disposal of the Sifam Properties toPanther is a related party transaction for the purposes of the AIM Rules. TheDirectors of Elektron, having consulted with its Nominated Adviser, BeaumontCornish Limited, consider the terms of the transaction to be fair andreasonable insofar as its shareholders are concerned. For further information, please contact: Chris LeighElektron PlcTel: 01708 336308 Roland CornishBeaumont Cornish LimitedTel: 020 7628 3396 ENDS This information is provided by RNS The company news service from the London Stock Exchange