Business
Disposal
Disposal.
About this update from Billington Holdings Plc
[{"type":"text","content":"\n AMCO Corporation PLC\n14 April 2008\n\n\nPress Release 14 April 2008\n\n\n Amco Corporation Plc\n\n\n Disposal of non-core assets\n\n Proposal to change of name to Billington Holdings plc\n\n Board changes\n\n Change of Registered Office\n\n\nAmco Corporation Plc ('Amco Corporation' or 'the Group') is pleased to announce\nthat it has reached agreement to sell certain non-core operations, comprising\nthe Group's construction, manufacturing and property investment and development\nbusinesses ('the exiting group'), to Amco Group Limited ('Newco') for a cash\nconsideration of £9.4 million, payable as to £8 million on completion and the\nbalance within 12 months. Amco Group Limited is owned by Endless LLP and\ncertain directors and employees.\n\n\n\nReasons for the disposal\n\nAmco Corporation Plc is the holding company for a broad mix of companies serving\na range of sectors, including structural steel, construction, property,\nengineering and manufacturing. Following the talks held in 2006 regarding a\npossible buy out of the entire Group, the Board has reviewed the strategic\ndirection of the Group. The Board has concluded that there are limited\nsynergies between some parts of the Group and that shareholder interests would\nbe better served by a clear strategic focus.\n\n\n\nThe transaction will transform the Group, with the Retained Group focussed\nwholly on the existing Structural Steel and Engineering businesses. The\nmajority of the Retained Group comprises Billington Structures Ltd, a large and\nprofitable structural steel business with a track record of growth. The exiting\ngroup includes businesses which have provided volatile results which detract\nfrom the consistency and visibility of the earnings stream from the Retained\nGroup (being the Amco group companies following the sale of the exiting group).\n\n\n\nThe independent directors (being the Directors of Amco Corporation apart from\nMessrs Jackson and Swire) believe the Retained Group is capable of sustained\norganic growth, whilst the disposal proceeds provide the flexibility to invest\nwhere appropriate to capitalise on organic opportunities and to consider growth\nby acquisition.\n\n\n\nStructural Steel comprises Billington Structures, the award-winning and\nnationally recognised steelwork contractor; easi-edge, a safety solutions\nprovider, and Hollybank, a ...