Business
Sifam Properties Disposal
Sifam Properties Disposal.
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[{"type":"text","content":"\n Elektron PLC\n10 August 2007\n\n\n\nFOR IMMEDIATE RELEASE\n\n 10 August 2007\n\n ELEKTRON PLC\n ('Elektron' or the 'Company')\n Disposal of Sifam properties\n\nFollowing completion of the purchase of the entire share capital of Sifam\nInstruments Limited ('Sifam') announced yesterday for a cash consideration of\n£2 million (subject to adjustment), the Board of Elektron announces that it has \nexchanged contracts for the sale and leaseback of the two freehold factory\nproperties owned by Sifam (the 'Sifam Properties') for a cash consideration of\n£2,336,250. Completion has already taken place on one of the properties. The \nproceeds from the sale of the other property totalling £938,500 will be received\nonce certain registration documents have been processed by the Land Registry.\n\nThe Sifam Properties had previously been included in Sifam's audited accounts as\nat 2 December 2006 at a value of £883,000 and comprise 68,000 square feet of\nindustrial premises in Torquay.\n\nThe Directors have received a third party open market valuation of the Sifam\nProperties as at 3 August 2007, prepared by Pennycuick Collins inc Ralph &\nJanes, Chartered Surveyors, ('Pennycuick Collins') in accordance with the\nguidelines contained within the RICS Appraisal and Valuation Manual (5th\nEdition published 1 May 2003). Pennycuick Collins have confirmed that the\npurchase price mentioned above is fair and reasonable.\n\nUnder the two 10 year leases the aggregate rental payable by Elektron is\n£215,000 per annum following a 12 month rent free period. The proceeds from the\ndisposal of the Sifam Properties will be used to reduce Elektron Group debt. The\nDirectors anticipate that the transaction will not materially affect earnings\n(excluding negative goodwill).\n\nThe purchaser of the Sifam Properties is Panther Securities Plc ('Panther'),\nwhich together with its Chairman Mr Andrew Perloff and associates, holds\n13,260,909 ordinary shares of 5p each in Elektron representing 15.3% of the\nissued share capital. Accordingly, the disposal of the Sifam Properties to\nPanther is a related party transaction for the purposes of the AIM Rules. The\nDirectors of Elektron, having consulted with its Nominated Adviser, Beaumont\nCornish Limited, consider the terms of the transaction to be fair and\nreasonable insofar as its shareholders are concern...