Reduced holding in Hardide

26 May 2006 07:02

Proventec PLC26 May 2006 Press Release 26 May 2006 Proventec Plc ("Proventec" or "the Company") Reduction of holding in Hardide Proventec Plc (AIM:PROV), a provider of specialist steam cleaning and coatingstechnologies, today announces that it raised £1.0 million (after expenses) bythe sale of 8,598,350 ordinary shares at 12.5 pence per share in Hardide plc ("Hardide") via an institutional placing to investors. The original holding of29.9% in Hardide was held through Proventec's subsidiary, Flintstone ManagementServices Limited ("FMS"). Post the placing, FMS retains 31,499,725 ordinaryshares in Hardide which equates to 21.5% of the increased share capital of thecompany. FMS has undertaken not to dispose of any further ordinary shares inHardide, without the permission of Hardide's broker, Daniel Stewart & Co plc,before 30 November 2006. AIM-listed Hardide provides and applies tungsten carbide coatings to a widerange of engineering components. The Company's patented technology is unique inthat it combines both abrasion and corrosion resistant properties in onecoating. When applied to components, the technology is proven to offer dramaticcost savings through reduced downtime and extended component life. Customersinclude leading companies operating in oil and gas exploration and production,valve and pumps manufacturing and general engineering. David Chestnutt, Chief Executive of Proventec, said: "Through our FMS subsidiarywe have been long term original holders in Hardide and have been financiallysupportive through the company's corporate development. The reduction of ourholding makes strategic sense for both parties, allowing Proventec to realise anet profit of £580,000 for our shareholders whilst at the same time allowingHardide to diversify its current shareholder base with a number of additionalinstitutional holders. "As part of the Company's stated strategy, the proceeds of this sale will beused to develop Proventec's core businesses in hygienic solutions andpreventative coatings." - Ends - For further information, please contact: Proventec Plc David Chestnutt, Chief Executive Tel: + 44 (0) 151 706 0626 dchestnutt@proventecplc.com www.proventecplc.com Collins Stewart Limited Andrew Smith / Martin Eales, Corporate Finance Tel: + 44 (0) 20 7523 8350 meales@collins-stewart.com www.cstplc.com Media enquiries: Abchurch Henry Harrison-Topham Tel: +44 (0) 20 7398 7700 henry.ht@abchurch-group.com www.abchurch-group.com Notes to editors Proventec is a specialist and innovative provider of steam cleaning and coatingstechnologies. The Company was formed as a result of the reverse takeover ofInnoCleaning Magma Holdings BV and OspreyDeepClean Limited, a group of fireretardant coatings and specialist steam cleaning businesses, by FlintstoneTechnologies plc in August 2005. Proventec provides solutions to a number of markets including the food retailand preparation market, hospitality industries, and healthcare which includeshospitals and suppliers of hospital equipment, transport infrastructure,construction materials and consumer products. The cleanings solutions aredesigned to target and combat the spread of common food bacteria and HAI(Hospital Acquired Infections), including MRSA. The coating businesses have anemphasis on preventative environmentally friendly solutions for its clientsdelivering demonstrable health and/or cost benefits. Proventec also provides coatings solutions such as fire retardants,anti-abrasion and corrosion materials for industrial use. In addition todeveloping the technology and supplying the products, Proventec also providestraining support and financing options to its customers. Through its subsidiary, Flintstone Management Services Limited, Proventec hasinvestments in the following companies: Biocote Limited, Firestop ChemicalsLimited, Hardide plc, Oxis Energy Limited and the Ultra Motor Company Limited. This information is provided by RNS The company news service from the London Stock Exchange