Business
Disposal
Disposal.
About this update from Vesuvius Plc
[{"type":"text","content":"\n \nRNS Number : 9538A Vesuvius plc 27 March 2013 \n \n\n \n \nStrictly confidential\n \n27 March 2013\n \nDisposal of Precious Metals Processing Division\nProposed share repurchase programme \n \nVesuvius plc (\"Vesuvius\" or the \"Company\"), a leading metal flow engineering company, announces that it has entered into an agreement to sell its Precious Metals Processing Division (\"PMP\") to Heimerle + Meule GmbH (\"H + M\"), a subsidiary of L. Possehl & Co, mbH (\"Possehl\") for a cash consideration of €56.8m, payable on completion.\n \nThe cash consideration will be subject to closing balance sheet adjustments. Completion, which is expected by the end of the first half of 2013, will be subject to conditions including approval by the European Commission and by the Supervisory Board of Possehl. \n \nThe majority of the disposal proceeds will be returned to shareholders through the on-market repurchase of shares. The balance of the proceeds will be used to reduce the Company's existing borrowings.\n \nCommenting on the sale François Wanecq, Chief Executive of Vesuvius, said:\n \n\"Following the recent creation of Vesuvius plc through the demerger of Cookson, this is a further important strategic step for our company. It represents the sale of a non-core asset and the final exit from precious metals processing, leaving Vesuvius principally focused on our core competence of molten metal engineering, serving the global steel and foundry industries.\n \n\"It is also a very positive outcome for the Precious Metals Processing business and its employees, offering the opportunity to develop a long-term future within a group dedicated to the precious metals industry.\n \n\"As a result of this disposal, we intend to return the majority of the net proceeds to shareholders through an on market repurchase of shares, demonstrating our desire to exercise strong capital discipline and generate superior returns. Our strong balance sheet allows us to do this and still remain able to fund attractive growth opportunities.\"\n \nUwe Lüders, CEO of Possehl, said:\n \n\"With this acquisition we will strengthen and internationalise our very successful Precious Metals Business and will become one of the leading market players in Europe.\"\n \nP...