9th May 2007 13:04
9 May 2007 - Tate & Lyle PLC Update on the Disposal of European Starch Operations Tate & Lyle announces that it is at an advanced stage of exclusive discussionswith Syral SAS (a subsidiary of Tereos of France) which may lead to the disposalof its interest in certain of the facilities of its Food & IndustrialIngredients, Europe division ("TALFIIE"), and that it has today begun theconsultation process with the European and local works councils and otheremployee representatives. Tate & Lyle announced on 25 October 2006 that it was exploring the possibilityof the full or partial disposal of TALFIIE. The TALFIIE operations that aresubject to the ongoing discussions ("the Target Businesses") announced today arethose in the UK, Belgium, France, Spain and Italy. Tate & Lyle's operations in Koog, The Netherlands (the main site in WesternEurope for corn-based value added starch production), Morocco and the Eaststarchjoint venture (which has operations in Hungary, Slovakia, Bulgaria, Romania andTurkey) are excluded from these discussions. Tate & Lyle will continue todevelop its value added ingredients business in Europe through these businessestogether with its Global Food Ingredients Group, which includes CesalpiniaFoods, and (upon completion) G.C. Hahn, and will continue to seek to supplementits value added business through the acquisition of further bolt-on ingredientcompanies. TALFIIE's Belgian entity includes the head office, shared service centre andsingle billing entity in Aalst, Belgium ("SSC"). The SSC is excluded from thesale discussions and consultations are now underway regarding how, if thedisposal of the Target Businesses goes ahead, the functions currently performedin the SSC will be restructured to reflect the requirements of Syral and of Tate& Lyle for their respective retained operations in Europe. Following consultation with employee representatives, any transaction would besubject to antitrust approval in Europe. The earliest anticipated date forcompletion is therefore the end of summer 2007. FINANCIAL CONSIDERATION The gross cash consideration for the Target Businesses before restructuringcosts is expected to be in the range of £200 million to £220 million. Based onun-audited pro forma figures for the year 31 March 2007, the proportions ofTALFIIE operating profits and net operating assets attributable to the TargetBusinesses were both approximately 50%. On the assumption that an agreement in the terms currently contemplated isentered into, the Board is now actively considering the utilisation of theproceeds as part of a return of capital to shareholders and expects to be in aposition to update shareholders in this regard at the AGM on 18 July 2007. Further announcements will be made as appropriate. ENDS Notes to Editors Tereos is an agro-industrial cooperative Group which processes 500,000 hectaresof sugar beets, sugar canes and cereals into sugars and alcohols. Tereos bringstogether 14,000 sugar beet and cereal farmers and employs 6,500 people. Tereosoperates 27 industrial production facilities in France, Czech Republic, Brazil,La R£union and Mozambique to produce 2.9 million tonnes sugar and 1 million m3of ethanol and alcohol. Syral is the fourth largest European producer of glucoses and other starch-basedsweeteners. The plant, located in Marckolsheim in Alsace, processes 600,000tonnes of maize and wheat annually into 340,000 tonnes of finished products. Theturnover for previous fiscal year ending on September 30, 2006, was 177 millionEuros. Additional information can be found on websites www.tereos.com and www.syral.fr. CONTACTS Mark Robinson, Director of Investor Relations Tel: +44(0)20 7626 6525 or Mobile: +44(0)7793 515861 Ferne Hudson, Head of Media and Public Relations Tel: +44(0)20 7626 6525 or Mobile: +44 (0)7713 067433 About Tate & Lyle: Tate & Lyle is a world leading manufacturer of renewable foodand industrial ingredients. It uses innovative technology to transform corn,wheat and sugar into value-added ingredients for customers in the food,beverage, pharmaceutical, cosmetic, paper, packaging and building industries. The Company is a leader in cereal sweeteners and starches, sugar refining, valueadded food and industrial ingredients, and citric acid. Tate & Lyle is the worldnumber-one in industrial starches and is the sole manufacturer of SPLENDA(R)Sucralose. Headquartered in London, Tate & Lyle is listed on the London Stock Exchangeunder the symbol TATE.L. In the US its ADRs trade under TATYY. The Companyoperates more than 65 production facilities in 29 countries, throughout Europe,the Americas and South East Asia. It employs 7,000 people in its subsidiarieswith a further 4,800 employed in joint ventures. Sales in the year to 31 March2006 totalled £3.7 billion. Additional information can be found on this websitewww.tateandlyle.com. SPLENDA(R) and the SPLENDA(R) logo are trademarks of McNeil Nutritionals, LLC Copyright Business Wire 2007Related Shares:
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