Business
Sale of Sasib S.p.A.
Sale of Sasib S.p.A..
About this update from Mpac Group Plc
[{"type":"text","content":"\n Molins PLC\n31 July 2006\n\n\n\n31 July 2006\n\n\nMOLINS PLC\n\n\nSALE OF SASIB S.P.A.\n\n\nThe Board of Molins PLC, the international specialist engineering group,\nannounced on 24 May 2006 its intention to either sell or close its Italian\nsubsidiary, Sasib S.p.A., and that discussions with potential acquirers were\ntaking place. The Board is now pleased to announce that closure of Sasib has\nbeen avoided and that on Friday 28 July 2006 the share capital of Sasib was\ntransferred, for a nominal consideration, to Paritel S.p.A., an Italian\nengineering business.\n\n\nThe total cash cost of closure was previously estimated at £8m, of which £6m\nwould have been incurred in 2006. The result of selling Sasib on the terms\nagreed, rather than closure, is that the cash cost to Molins is approximately\n£4m lower than the estimated costs of closure.\n\n\nSasib designs, manufactures and sells specialist machinery, predominantly\npacking machines for the tobacco industry. Sasib has been sold because the sales\nbeing generated by the business do not support the current cost base in Italy.\nOperating losses at Sasib in 2005 were £0.6m and £1.4m for the period from 1\nJanuary to 24 May 2006.\n\n\nAs at 24 May 2006 Sasib had gross assets of £9.7m (£12.3m at 31 December 2005)\nand after deducting bank debt, creditors and other liabilities, had net book\nassets of £3.0m. Subsequent to 24 May Molins has injected £4.6m of cash into\nSasib, partly to meet the losses incurred prior to 24 May. The total amount to\nbe written off on the sale of Sasib is £8.5m including transaction expenses and\nSasib-related inventories held elsewhere in the Molins Group.\n\n\nEnquiries: Molins PLC\nTel: 01908 219000\nPeter Byrom, Chairman\nDavid Cowen, Group Finance Director\n\n\nIssued by: Citigate Dewe Rogerson\nTel: 020 7638 9571\nMargaret George\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange \n ","length":2058,"tagName":"div"}]