Buckland Investments PLC
25 November 1999
Placing of new ordinary shares
Sale of properties
Buckland has placed 3,000,000 new ordinary shares at a price of 10p each to
raise £300,000 of new capital (before expenses). Application will be made for
the new ordinary shares to be admitted to trading on AIM and it is expected that
dealings will commence on 30th November 1999.
The proceeds of the placing will be used to acquire the 20% minority interest in
Connectic Metallo SA currently owned by present and former managers of that
company and the 10% minority interest in Euro Asia Connectors Co Ltd currently
owned by our Thai partner in that business. The total consideration for these
purchases will be about £ 210,000. The balance of the funds raised will be used
to provide additional working capital, in particular for the setting up in
Thailand of metal treatment operations. Following the acquisition of these
minority interests, Buckland will own 100% of all its subsidiaries.
Connectic Metallo SA has exchanged contracts for the sale of its freehold site
at Vitry sur Seine, near Paris, for a total consideration of French francs 2.40
million (£240,000 approx.). The sale, which is conditional on planning
consents, is in two phases. The sale of land and buildings which are no longer
utilised by Connectic is due to be completed no later than 26th February 2000
for a consideration of FFr 1.00m. The sale of the rest of the site, which
comprises manufacturing and office facilities currently in use, is due to be
completed by 30th July 2000 for a consideration of FFr 1.40m.
The sale of this site ( for a sum in excess of book value ) will represent the
last step in the completion of the process of transferring all Connectics
manufacturing activities to Thailand. As already advised to shareholders, the
transfer of the stamping operations from Vitry will commence in January and will
be completed in time for the factory to be vacated by the end of next July.
Connectic's remaining operations in France (commercial, design and development,
finance and administration) will be relocated to smaller, leasehold premises.
The transfer of all manufacturing operations to Thailand and the relocation of
the remaining functions is expected to result in a significant reduction in
Connectic's manufacturing and operating costs.
Enquiries:
Buckland Investments plc
Patrick Rogers
Chairman
Tel: 0411 420702