17 Feb 2010 07:00
TTG.L
TT electronics plc
Disposal
TT electronics plc (the "Group"), a world leader in sensor and electronic component technology, announces that it has agreed to sell the entire issued share capital of its wholly owned South African subsidiary, Wire Systems Technology (Pty) Ltd ("WST") to First Strut (Pty) Limited, a South African group engaged in manufacturing, construction and distribution in the infrastructure sector (the "Sale"). Completion of the Sale is subject to clearance from the South African Competition Commission and the receipt of certain approvals required by the South African exchange control authorities.
The consideration for the Sale, payable in cash on completion, is £5.0 million (Rand 60 million)1 plus an amount equal to the cash balances of WST on the day preceding the completion date (the "Cash Balance"). Furthermore, the consideration is subject to an adjustment following completion to the extent that the value of the net assets delivered (excluding the Cash Balance) is greater or less than £6.4 million (Rand 77.8m) (the target net asset value). The proceeds of the disposal will be applied to reduce the Group's borrowings.
WST is a manufacturer and supplier of winding wire, electrical motor components, electrical insulation and related products and is within the Group's General Industrial division which is being run for value.
In its most recent statutory accounts for the year ended 31 December 2008, WST reported profit before tax of £1.0 million (Rand 12.0 million). At 31 December 2009 WST had gross assets of £10.0 million (Rand 121.5 million). Unaudited profit before tax for the year ended 31 December 2009 was £0.4 million (Rand 5.0 million).
Commenting on the disposal, Group Chief Executive, Geraint Anderson said:
"The disposal of WST represents further progress against the objectives we set following our strategic review last year. We are pleased to have been able to secure a good valuation for the business in the current challenging economic environment. This represents the most significant disposal from our General Industrial division to date, following the sales of two smaller businesses during 2009. "
1 For the purposes of this announcement the Rand amounts have been converted to their sterling equivalents at an exchange rate of Rand 12.1 = £1 sterling
Enquiries:
| TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director | Tel: 01932 841310
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Biddicks Zoë Biddick |
Tel: 020 7448 1000
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Notes to Editors:
TT electronics plc is a technology based group, providing components, sensors, integrated manufacturing services and secure power solutions to a broad base of customers worldwide.
For more information visit www.ttelectronics.com
Tt Electronics (TTG)