Elektron PLC
01 February 2007
For immediate release 1 February 2007
Elektron Plc
Disposal of Freehold Properties
Following completion of the purchase of the entire share capital of Howle
Holdings Plc ('Howle') announced on 18 December 2006 for a consideration of
£3,077,000, Elektron Plc ('Elektron') announces that on 31 January 2007 it
exchanged contracts for the sale and leaseback of four of the five freehold
factories owned by Howle for a cash consideration of £4,415,000 with annual
rentals of £343,500. It is anticipated that the transaction will not materially
affect earnings. Completion is to take place within 4 weeks.
These properties had previously been included in Howle's published interim
accounts as at 31 March 2006 at a valuation of £4,685,000 and comprised premises
in Tenbury Wells, Princes Risborough and Clacton. The proceeds will be used to
reduce Howle debt by approximately £2.1 million with the remainder added to cash
reserves.
The purchaser is Panther Securities Plc, which together with its Chairman Mr.
Andrew Perloff and associates, holds 13,260,909 ordinary shares of 5p each in
Elektron representing 15.29% of the issued share capital and is consequently a
related party.
The Directors of Elektron, having consulted with its Nominated Adviser, Beaumont
Cornish Limited, consider the terms of the transaction to be fair and reasonable
insofar as its shareholders are concerned.
For further information, please contact:
Chris Leigh
Elektron Plc
Tel: 01708 677269
Michael Cornish
Beaumont Cornish Limited
Tel: 0207 628 3396
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