Sale of the Saunderton Property

3 Dec 2008 13:53

MOLINS PLC  3 December 2008

Sale of the Saunderton Property

Molins PLC announces the sale of its Saunderton property for a cash consideration of £16.2m, and has entered into a three year, rent-free, lease to carry on its operations on a part of that site. The sale has been made pursuant to the option agreement approved by shareholders on 18 March 2008.

The purchaser has today paid £15.4m in cash, which together with £0.8m already paid results in a total cash consideration of £16.2m. This is a £1.3m reduction from the cash consideration of £17.5m set out in the option agreement and has been agreed between the purchaser and the Company to reflect changes in the economic environment. There has been no other significant change to the terms of the option agreement.

After estimated transaction expenses of £0.5m and tax on capital gains of £1.0m, total net cash proceeds will be approximately £14.7m. The net proceeds will be used to fund the Group's operations including reducing existing indebtedness, to move from the Saunderton site within three years and to improve the funding of the Molins UK Pension Fund by £1m. 

As at 30 June 2008, the property had a net book value of £13.0m and an associated deferred tax liability of £0.6m, resulting in a net carrying value of £12.4m at that date. The disposal is expected to increase the Group's net assets by approximately £2.6m.

Enquiries: 

Molins PLC Tel: 01908 219000 Dick Hunter, Chief Executive, David Cowen, Group Finance Director 

Issued by: Citigate Dewe Rogerson Tel: 020 7638 9571 Angharad Couch