Last checked at 13 Mar 2009 15:21
Volex Group plc
13 March 2009
Volex Group plc
("Volex" or the "Company")
The Board of Volex Group plc, the global electrical and electronic cable assemblies group, is pleased to announce an extension to its banking facilities and the posting of a shareholder circular in relation to the proposed sale of the Company's Wiring Harness Division, as announced on 9 February 2009.
Extension of banking facilities
Volex and Lloyds TSB Bank plc yesterday agreed to extend the expiry date of the Company's existing $76 million revolving credit facility. The facility, which was due to expire in December 2009, has now been extended to March 2012 and the terms and covenant levels have been updated in line with the Company's latest 3 year plan. The four covenants contained within the existing facility have been reduced to a single leverage covenant. As in the existing facility the margin payable is dependent on the leverage ratio of the Company, although minor changes have also been made to the rates to reflect current market practice, The extended agreement also incorporates other amendments with respect to prepayment conditions, amortisation schedules and sundry other terms to ensure that the updated facility supports the Company's ongoing growth and development.
Posting of shareholder circular and notice of EGM
Further to the Company's announcement on 9 February 2009 regarding the proposed sale of its Wiring Harness Division to Ionix Holdings Limited (the "Transaction"), Volex today announces the notice of the required Extraordinary General Meeting of the Company (the "EGM") to be held at 11am on 31 March 2009 at Dornoch House, Kelvin Close, Birchwood Science Park, Warrington, WA3 7JX.
In view of the size of the Wiring Harness Division, the Board has convened this EGM to allow shareholders to approve the Transaction under the Listing Rules, which define the Transaction as a class 1 transaction.
A circular has today been posted to shareholders, setting out further information regarding the Transaction and the notice of the meeting. Copies of the circular are available for inspection on the Company website (www.volex.com) and, during normal business hours on any weekday up to and including 31 March 2009, at the office of Eversheds LLP, Eversheds House, 70 Great Bridgewater Street, Manchester, M1 5ES.
In addition, a copy of the circular has been submitted to the UKLA and will shortly be available for inspection at the UKLA's document viewing facility, which is situated at 25 The North Colonnade, Canary Wharf, London,E14 5HS.
Commenting on these developments, Mike McTighe said:
"The extension of our existing banking facilities is a significant achievement within the currently challenging financial environment, and reflects positively on the confidence that the Board and our financial partners have in the prospects for the business.
The issuance of the Class 1 Circular is a significant step in the proposed disposal of the Wiring Harness Division and the Company remains on track to complete this disposal prior to the end of the current financial year.
The combination of these two developments leaves management well positioned to focus on further improvements in the Company's remaining profitable and cash generative divisions."
For further information please contact:
| Volex Group plc | |
| Mike McTighe, Chairman | 01925 830 101 |
| Andrew Cherry, Group Finance Director | 01925 844 604 |
| Weber Shandwick Financial | |
| Terry Garrett / Nick Dibden / James White / Katie Matthews | 020 7067 0700 |