Hill & Smith Hldgs PLC
12 December 2005
HILL & SMITH HOLDINGS PLC ('HILL & SMITH' OR 'COMPANY')
Investment in Zinkinvent GmbH ('Zinkinvent') - update
It was announced by the Board of Hill & Smith on 25 May 2005 that the Company
had agreed to subscribe €25.0m in cash for a 33.3% shareholding in Zinkinvent
and to advance an interest bearing loan to Zinkinvent of €10.0m. It was also
announced that Hill & Smith had entered into an exclusivity agreement, expiring
on 31 December 2005, enabling Hill & Smith to acquire all the remaining shares
in Zinkinvent.
Zinkinvent is a privately owned German holding company controlling 86% of Vista
NV ('Vista'), a Belgian company. Vista is a galvanizing and lighting pole
fabricating business with significant operations in Benelux, France and the USA
with many similarities to Hill & Smith's existing galvanizing and IPG businesses
in the UK.
Hill & Smith has over recent months been carrying out extensive due diligence on
Zinkinvent and Vista. Whilst progress with due diligence is well advanced, the
Board does not expect to be in a position to reach agreement for the purchase of
the remaining Zinkinvent shares before the expiry of the exclusivity period on
31 December 2005. The Board intends to continue discussions and negotiations
with a view to concluding such an agreement during the course of 2006.
A further update will be provided when Hill & Smith issues its preliminary
announcement of results for the year to 31 December 2005, which is expected to
be in early March 2006.
Disposal and Sale and Leaseback
On Friday 9 December 2005 the Company exchanged unconditional contracts for the
disposal of the surplus land and buildings at Rea Street, Digbeth, Birmingham,
following the closure of the Joseph Ash Galvanizing operation at this site in
April 2005, and the sale and leaseback of all the land and buildings at Charles
Henry Street, Digbeth, Birmingham operated by the Envirotanks division.
Completion of both transactions will take place on Friday 16 December 2005.
Total gross proceeds from the transactions will be £2.647m generating net cash
proceeds of £2.550m and an exceptional profit of £0.430m. The leaseback of the
Envirotanks site in Charles Henry Street is for a ten year term at a rental of
£88,000 p.a. subject to review in the fifth year.
Further information:
David Grove, Chief Executive
Hill & Smith Holdings PLC
Tel: 0121 704 7430
Edward Carter
Quantum Freshwater UK
Tel: 0121 633 7775
This information is provided by RNS
The company news service from the London Stock Exchange