Business
Investment Update
Investment Update.
About this update from Hill & Smith Plc
[{"type":"text","content":"\n Hill & Smith Hldgs PLC\n12 December 2005\n\n\nHILL & SMITH HOLDINGS PLC ('HILL & SMITH' OR 'COMPANY')\n\nInvestment in Zinkinvent GmbH ('Zinkinvent') - update\n\nIt was announced by the Board of Hill & Smith on 25 May 2005 that the Company\nhad agreed to subscribe €25.0m in cash for a 33.3% shareholding in Zinkinvent\nand to advance an interest bearing loan to Zinkinvent of €10.0m. It was also\nannounced that Hill & Smith had entered into an exclusivity agreement, expiring\non 31 December 2005, enabling Hill & Smith to acquire all the remaining shares\nin Zinkinvent.\n\nZinkinvent is a privately owned German holding company controlling 86% of Vista\nNV ('Vista'), a Belgian company. Vista is a galvanizing and lighting pole\nfabricating business with significant operations in Benelux, France and the USA\nwith many similarities to Hill & Smith's existing galvanizing and IPG businesses\nin the UK.\n\nHill & Smith has over recent months been carrying out extensive due diligence on\nZinkinvent and Vista. Whilst progress with due diligence is well advanced, the\nBoard does not expect to be in a position to reach agreement for the purchase of\nthe remaining Zinkinvent shares before the expiry of the exclusivity period on\n31 December 2005. The Board intends to continue discussions and negotiations\nwith a view to concluding such an agreement during the course of 2006.\n\nA further update will be provided when Hill & Smith issues its preliminary\nannouncement of results for the year to 31 December 2005, which is expected to\nbe in early March 2006.\n\nDisposal and Sale and Leaseback\n\nOn Friday 9 December 2005 the Company exchanged unconditional contracts for the\ndisposal of the surplus land and buildings at Rea Street, Digbeth, Birmingham,\nfollowing the closure of the Joseph Ash Galvanizing operation at this site in\nApril 2005, and the sale and leaseback of all the land and buildings at Charles\nHenry Street, Digbeth, Birmingham operated by the Envirotanks division.\nCompletion of both transactions will take place on Friday 16 December 2005.\n\nTotal gross proceeds from the transactions will be £2.647m generating net cash\nproceeds of £2.550m and an exceptional profit of £0.430m. The leaseback of the\nEnvirotanks site in Charles Henry Street is for a ten year term at a rental of\n£88,00...