Sale of Sasib S.p.A.

31 Jul 2006 08:45

Molins PLC31 July 2006 31 July 2006 MOLINS PLC SALE OF SASIB S.P.A. The Board of Molins PLC, the international specialist engineering group,announced on 24 May 2006 its intention to either sell or close its Italiansubsidiary, Sasib S.p.A., and that discussions with potential acquirers weretaking place. The Board is now pleased to announce that closure of Sasib hasbeen avoided and that on Friday 28 July 2006 the share capital of Sasib wastransferred, for a nominal consideration, to Paritel S.p.A., an Italianengineering business. The total cash cost of closure was previously estimated at £8m, of which £6mwould have been incurred in 2006. The result of selling Sasib on the termsagreed, rather than closure, is that the cash cost to Molins is approximately£4m lower than the estimated costs of closure. Sasib designs, manufactures and sells specialist machinery, predominantlypacking machines for the tobacco industry. Sasib has been sold because the salesbeing generated by the business do not support the current cost base in Italy.Operating losses at Sasib in 2005 were £0.6m and £1.4m for the period from 1January to 24 May 2006. As at 24 May 2006 Sasib had gross assets of £9.7m (£12.3m at 31 December 2005)and after deducting bank debt, creditors and other liabilities, had net bookassets of £3.0m. Subsequent to 24 May Molins has injected £4.6m of cash intoSasib, partly to meet the losses incurred prior to 24 May. The total amount tobe written off on the sale of Sasib is £8.5m including transaction expenses andSasib-related inventories held elsewhere in the Molins Group. Enquiries: Molins PLCTel: 01908 219000Peter Byrom, ChairmanDavid Cowen, Group Finance Director Issued by: Citigate Dewe RogersonTel: 020 7638 9571Margaret George This information is provided by RNS The company news service from the London Stock Exchange