Disposal discussions

26 Jun 2006 10:30

Renold PLC26 June 2006 Renold plc Disposal discussions In line with the Board's strategy to focus the Group on the core activities ofthe manufacture and sale of industrial chains, gears and couplings, the Board ispleased to announce that it is in advanced discussions regarding the disposal ofthe Group's Machine Tool business. Renold is at an advanced stage of negotiations with Venture Private Equity("VPE") whereby companies established by VPE will acquire the business andcertain assets of the Machine Tool business, and the appropriate employeeconsultation process is about to commence. The Board announced on 6 June 2006 that it is in separate discussions concerningthe potential disposal of the Group's Automotive business. It is intended thatproceeds from both potential divestments will be used to reduce Group debt. As a consequence of these ongoing discussions, it is now anticipated that theGroup's preliminary results for the year ended 31 March 2006 will be announcedin mid July. The Board expects that improved second half performance across theentire Group including Automotive and Machine Tools will result in underlyingoperating profits being towards the upper end of current market expectations. Anupdate on current trading will be given when the preliminary results areannounced. The Board of Renold will make further announcements regarding the progress ofthese potential disposals as soon as it is appropriate. For further information, please contact:Robert Davies, Chief Executive - tel: 0161 498 4500Tony Brown, Finance Director - tel: 0161 498 4500 This information is provided by RNS The company news service from the London Stock Exchange