12th Dec 2005 14:28
Hill & Smith Hldgs PLC12 December 2005 HILL & SMITH HOLDINGS PLC ("HILL & SMITH" OR "COMPANY") Investment in Zinkinvent GmbH ("Zinkinvent") - update It was announced by the Board of Hill & Smith on 25 May 2005 that the Companyhad agreed to subscribe €25.0m in cash for a 33.3% shareholding in Zinkinventand to advance an interest bearing loan to Zinkinvent of €10.0m. It was alsoannounced that Hill & Smith had entered into an exclusivity agreement, expiringon 31 December 2005, enabling Hill & Smith to acquire all the remaining sharesin Zinkinvent. Zinkinvent is a privately owned German holding company controlling 86% of VistaNV ("Vista"), a Belgian company. Vista is a galvanizing and lighting polefabricating business with significant operations in Benelux, France and the USAwith many similarities to Hill & Smith's existing galvanizing and IPG businessesin the UK. Hill & Smith has over recent months been carrying out extensive due diligence onZinkinvent and Vista. Whilst progress with due diligence is well advanced, theBoard does not expect to be in a position to reach agreement for the purchase ofthe remaining Zinkinvent shares before the expiry of the exclusivity period on31 December 2005. The Board intends to continue discussions and negotiationswith a view to concluding such an agreement during the course of 2006. A further update will be provided when Hill & Smith issues its preliminaryannouncement of results for the year to 31 December 2005, which is expected tobe in early March 2006. Disposal and Sale and Leaseback On Friday 9 December 2005 the Company exchanged unconditional contracts for thedisposal of the surplus land and buildings at Rea Street, Digbeth, Birmingham,following the closure of the Joseph Ash Galvanizing operation at this site inApril 2005, and the sale and leaseback of all the land and buildings at CharlesHenry Street, Digbeth, Birmingham operated by the Envirotanks division.Completion of both transactions will take place on Friday 16 December 2005. Total gross proceeds from the transactions will be £2.647m generating net cashproceeds of £2.550m and an exceptional profit of £0.430m. The leaseback of theEnvirotanks site in Charles Henry Street is for a ten year term at a rental of£88,000 p.a. subject to review in the fifth year. Further information:David Grove, Chief ExecutiveHill & Smith Holdings PLCTel: 0121 704 7430 Edward CarterQuantum Freshwater UKTel: 0121 633 7775 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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