12th May 2009 10:37
HYDRODEC GROUP PLC
("Hydrodec" or "The Company")
Sale of non-core Asset
12 May 2009
Hydrodec has today completed the sale of its Condition Monitoring Business to Healey Energy Services Pty Ltd. The business was acquired as part of the acquisition of the Young Site and is represented by a commercial oil analysis laboratory in Adelaide which forms no part of the Hydrodec plant.
Hydrodec will receive total cash consideration of AUD$800,000, with AUD$600,000 received on completion and a further AUD$200,000 to be received on 11th of July 2009. The proceeds will be used for general working capital requirements.
The Condition Monitoring Business made a profit of £0.1 million in the financial year ended 31 December 2008 and had a net asset value of £0.1 million.
Healey Energy Services Pty Ltd is a company owned by Mr. Russell Healey, a part-time executive of Hydrodec. As he is on the Board of Hydrodec Australia Pty Ltd, a subsidiary of Hydrodec, Mr. Healey is deemed to be a related party for the purposes of the AIM Rules. The Directors of the Company consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
Related Shares:
HYR.L