Business
Sale of Elektron Technology UK Limited
Sale of Elektron Technology UK Limited.
About this update from Checkit Plc
[{"type":"text","content":"\n \nRNS Number : 3272H Elektron Technology PLC 31 July 2019 \n\nElektron Technology Plc\n(AIM: EKT, \"Elektron\" or the \"Group\")\nSale of Elektron Technology UK Limited (which holds the Bulgin business)\nProposed Payments to Directors\nProposed Change of name to Checkit plc\nand\nNotice of General Meeting\nElektron Technology plc announces that it has entered into a conditional agreement with a special purpose vehicle wholly-owned by Equistone Partners Europe, one of Europe's leading mid-market private equity investors, to sell the entire issued share capital of Elektron Technology UK Limited (which holds the Bulgin business) for a total cash consideration of £105 million, before adjusting for net debt/cash and subject to working capital and other adjustments at Completion (the \"Proposed Transaction\"). Net proceeds after all costs including the settlement of the LTIP liability are expected to be in the region of £94 million. The Proposed Transaction creates significant value for Shareholders and will result in a major restructuring of the Group, as outlined below.\nDetails of the proposals are set out in a circular (the \"Circular\") which is being sent to Shareholders today and will also be made available for download from the Company's website at www.elektron-technology.com/investors/.\nAs the Proposed Transaction will constitute a fundamental change of business of the Company and its subsidiaries (\"Group\") pursuant to the AIM Rules it will require the approval of Shareholders at a general meeting (\"General Meeting\") to be held at 11.00 a.m. on 3 September 2019 at the offices of Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London EC4R 3TT. Shareholders will also be asked to approve certain bonus and incentive payments to be made to the Executive Directors and recommended by the Remuneration Committee.\nIt is intended that John Wilson, Group CEO, will remain with the Bulgin business being sold. He will also continue as a Director of the Group in a non-executive capacity to ensure continuity and to enable the Group to benefit from his commercial and technical expertise. Keith Daley will remain as Executive Chairman and become solely responsible for the running of the Group alongside Andy Weatherstone, Chief Financial Officer.\nFollowing Completion of the Transaction and the issuance of the Group's Int...