Business
Proposed sale of division & notice of GM
Proposed sale of division & notice of GM.
About this update from Mpac Group Plc
[{"type":"text","content":"\n \nRNS Number : 5109H Molins PLC 08 June 2017 \n\n8 June 2017 \nAIM: MLIN\nMolins PLC\n(\"Molins\", \"the Company\" or \"the Group\")\n \nGlobal packaging solutions group\nProposed Sale of Molins Instrumentation & Tobacco Machinery division\nand Notice of General Meeting \nMolins, the global packaging solutions group, today announces that it has entered into a conditional agreement with G.D S.p.A., a wholly owned subsidiary of Coesia S.p.A., to sell its Instrumentation & Tobacco Machinery division (\"I&TM\") for a gross cash consideration of £30 million on a cash free debt free basis. In line with the Company's strategy, the net proceeds of the Sale will primarily be used to invest in the Group's packaging machinery activities to capitalise on the attractive growth opportunities in their end markets.\n \nHighlights\n· The Sale provides the opportunity to accelerate the Group's strategy to be a global leader of packaging solutions and will provide the platform to invest in the Group's existing Langen and Molins Technologies businesses and acquire complementary businesses\n· Gross consideration for I&TM of £30 million, with net cash proceeds after fees and taxation expected to be £27.3 million, similar to the book value of the net assets, including goodwill, being sold\n· The Company has agreed to make a one-off contribution to the Molins UK Pension Fund of 10% (approximately £2.7 million) of the net cash proceeds and has formalised an agreement with the Fund's trustees following the completion of the valuation as at 30 June 2015 \n· £1.5 million of the consideration will be retained within an escrow account for up to two years in accordance with warranties and indemnities given by Molins in the Sale Agreement\n· Balance of net proceeds of £23.1 million will be retained to execute growth strategy, strengthen the Group's balance sheet and leave it in a cash-positive position\n· As part of the transaction the Company has agreed to transfer the name 'Molins' to G.D, an Italian leading supplier of tobacco machinery - following completion, Molins will retain the right to use the name for a period of six months\n· The first part of Molins...