Dissolution of Joint Arrangements

27th Jan 2012 11:40

GKN plc announces dissolution of joint arrangements in Thailand

GKN plc announces the dissolution of its Driveline joint arrangements with JTEKT Corporation (`JTEKT`) in Rayong, Thailand. GKN and JTEKT have concluded a Share Exchange Agreement under which GKN has acquired JTEKT`s 49% shareholding in GKN Driveline JTEKT Manufacturing Limited (`GTM`), and transferred to JTEKT its 49% shareholding in GKN JTEKT (Thailand) Limited (`GTT`).

Following this amicable dissolution, GKN now owns 100% of GTM (the manufacturing facility) and JTEKT now owns 100% of GTT (the sales and distribution arm). Each will operate independently except for the continuation of certain existing supplies of driveshafts to Toyota.

GKN will pay JTEKT net consideration of approximately £7.7 million which will be funded from the Group's existing resources, with further deferred consideration of £1.3 million contingent upon GTM obtaining certain specified future business awards.

27 January 2012Further EnquiriesAnalysts/Investors:Guy StainerInvestor Relations DirectorGKN plcT: +44 (0)207 463 2382M: +44 (0)7739 778 187E: [email protected]:Chris FoxGroup Communications DirectorGKN plcT: +44 (0)1527 533238M: +44 (0)7920 540051E: [email protected] LorenzFTI ConsultingT: +44 (0)20 7269 7113M: +44 (0)7775 641 807Notes to Editors

GKN plc is a global engineering business serving the automotive, aerospace and land systems markets. It has operations in more than 30 countries, around 42,000 employees in subsidiaries and joint ventures and had sales of £5.4 billion in the year ended 31 December 2010. GKN plc is listed on the London Stock Exchange .

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