Filtronic Regulatory News (FTC)

6 Sep 2006 15:18

Filtronic PLC06 September 2006 For immediate release 6 September 2006 Filtronic plc Posting of shareholder circular and proposed return of cash Filtronic plc confirms that it has today posted a circular to shareholders (the"Circular") in relation to the proposed disposal of its Wireless InfrastructureBusiness to Powerwave Technologies, Inc. ("Powerwave") and the creation ofB-shares to enable an effective return of cash. In accordance with the UKLAlisting Rules, the Circular has today been delivered to the UKLA for publicationthrough its Document Viewing Facility at: UK Listing Authority25 The North ColonnadeCanary WharfLondon E145 5HS As set out in the Circular, the Board intends to return to shareholders, via aB-share scheme, substantially all of the proceeds from the sale of considerationstock in Powerwave plus £18.5 million. The net cash proceeds of approximately£92.4 million, less £18.5 million, will be used to repay debt, to finance up to£15 million of investment in Filtronic Compound Semiconductors, and to retainapproximately £22.5 million for working capital purposes. The balance ofapproximately £24 million will be retained by Filtronic plc as a provisiontowards any warranty commitments to Powerwave for the 12 months after completionof the sale to Powerwave and other contingent liabilities that may arise withchanges in the continuing Group's structure. If approved by shareholders at the EGM convened for 29 September 2006, thereturn of cash will involve the creation of up to 2,600,000,000 non-cumulativeredeemable preference shares of 5p each, having the rights and restrictions setout in the articles of association of the Company, as proposed to be amendedpursuant to the resolutions being proposed at this EGM. Enquiries Filtronic plc:Professor J David Rhodes, Group Chief Executive Tel: 01274 530622 / Mob: 07850 827 280 Charles Hindson, Group Finance Director Tel: 01274 530622 / Mob: 07800 706 319 Parkgreen Communications Ltd:Paul McManus Tel: 020 7493 3713 / Mob: 07980 541 893 This information is provided by RNS The company news service from the London Stock Exchange