Business
Proposed Disposal and Notice of General Meeting
Proposed Disposal and Notice of General Meeting.
About this update from Avingtrans Plc
[{"type":"text","content":"\n \nRNS Number : 1447X Avingtrans PLC 04 May 2016 \n\n4 May 2016\nAvingtrans Plc\n(\"Avingtrans\" or the \"Company\" or the \"Group\")\n \nProposed Disposal of Aerospace Division and Notice of General Meeting\n \nAvingtrans (AIM:AVG) announces that it has entered into an agreement to sell (the \"Transaction\") its Aerospace Division (Sigma Components) to Anthony Bidco Limited (the \"Purchaser\") a company controlled by funds managed by Silverfleet Capital Partners LLP (\"Silverfleet Capital\") for an enterprise value of £65 million which, after adjustment for debt and working capital and associated transaction costs, will result in the Company receiving proceeds of approximately £52 million (before escrow arrangements). \n \nSilverfleet Capital is a leading, independent, European private equity firm, specialising in mid-market buyouts.\n \nFollowing the proposed Transaction, Avingtrans will continue to develop the Energy and Medical markets served by its Metalcraft and Maloney Metalcraft businesses. It is intended that Avingtrans will return a substantial portion of the proceeds of sale to shareholders.\n \nAs well as partly repaying the Group's existing debts, the retained portion of the sale proceeds will be used to continue to build Metalcraft's leadership in Energy related markets (notably in the nuclear sector) and potentially in other high value engineering niches, where the Board believes that it can use its turnaround expertise to add substantial shareholder value.\n \nSteve McQuillan, Chief Executive Officer of Avingtrans plc, commented \"I am delighted to announce the agreement to sell the Aerospace Division. Following a strategic review the Board concluded that it was the right time to consider the disposal of the Aerospace business which had achieved the majority of its targets. This transaction further demonstrates Avingtrans' track record in growing successful businesses and realising value for shareholders. The proceeds of this transaction will enable the return of substantial value to shareholders while also providing additional investment for the Energy and Medical businesses where the Board believes there are exciting prospects which have the potential to deliver significant further value for shareholders.\"\n \n \nBackground to and reasons for the Disp...