22nd Mar 2005 07:00
Embargoed 0700hrs 22 March 2005 Densitron Technologies plc (`Densitron' or the `Group') Disposal Densitron Technologies plc is pleased to announce that it has successfullynegotiated the sale of its 45% interest in Hitech Electronics Corporation(`Hitech') of Taiwan for an initial cash payment of circa ‚£4.15m plus a furtherpayment of 22.5% of the net profits of Hitech for its financial year ending31st December 2005. For its financial year ended 31st December 2004 Hitechreported a profit of ‚£1,364,133.Hitech is being sold to Stockholm listed Beijer Electronics AB and, as part ofthe sale, Densitron has secured an exclusive distribution agreement to sellHitech Liquid Crystal Display Modules in Europe, Japan and North and SouthAmerica.Rob Smith, Group Financial Director, commented:"Following an extended period of internal review and restructuring we are verypleased to have negotiated such beneficial terms for the disposal of ourinterest in Hitech, which represents a profit on investment of ‚£1.6m for theGroup. We now have a clear strategy for the future development of the Group andthe proceeds of the sale will be used to reduce borrowings, bolster workingcapital and fund future acquisitions.The successful sale of Hitech marks an important stage in the Group'sdevelopment and will allow us to implement our strategy to bring further valueinto the Group and we look forward to reporting on further progress in duecourse." -Ends- For further information:Rob Smith - Finance director Tel: 01959 542000Densitron Technologies plcAndrew Tan - Account Director Tel: 020 7245 1100Hansard CommunicationsENDDENSITRON TECHNOLOGIES PLCRelated Shares:
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