4th Sep 2007 07:02
TT electronics PLC04 September 2007 TT electronics plc Disposal TT electronics plc, a world leader in sensor and electronic componenttechnology, announces that it has sold the business and assets (excluding thefreehold property) of its wholly owned subsidiary, AEI Cables Limited ("AEI"), amanufacturer of power cables, to a subsidiary of Paramount Cables Limited, acable manufacturer based in New Delhi in India (the "Sale"). The anticipated consideration of the Sale is £13.3 million, which is a discountof £13.2 million against the carrying value of the net assets of AEI, which areexpected to be £26.5 million on the date of completion. This discount, togetherwith other costs, will be included in the discontinued activity shown in theforthcoming Interim Report. £12.4 million of the consideration has been paid at completion and a further£0.9 million is payable in the form of a loan note, which is repayable withinone year and bears a commercial rate of interest. The final settlement of theconsideration will be paid on agreement of the completion accounts. As reported in our statement on 29 June 2007, AEI Cables is currentlyloss-making. In its 2006 statutory accounts, AEI Cables reported profit beforetax and exceptional items of £0.08 million and net assets of £32.8 million. The proceeds of the disposal will be applied to reduce the group's borrowings. Commenting on the disposal, Chief Executive, Neil Rodgers said: "The disposal of AEI Cables is an important step towards increased concentrationon our electronic activities and follows the closure of the power cablesdivision in 2005. This is in line with our strategy of rationalising ournon-core activities. Our electrical division now comprises profitable businessesmanufacturing non-commodity, high margin products. Our clear focus is to developour worldwide businesses to enhance our position as a specialist supplier ofsophisticated electronic and electrical components and sensors." For further information please contact: TT electronics plcNeil Rodgers, Chief Executive: Tel: 01932 841 310 BiddicksZoe Biddick: Tel: 020 7448 1000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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