Molins PLC
31 July 2006
31 July 2006
MOLINS PLC
SALE OF SASIB S.P.A.
The Board of Molins PLC, the international specialist engineering group,
announced on 24 May 2006 its intention to either sell or close its Italian
subsidiary, Sasib S.p.A., and that discussions with potential acquirers were
taking place. The Board is now pleased to announce that closure of Sasib has
been avoided and that on Friday 28 July 2006 the share capital of Sasib was
transferred, for a nominal consideration, to Paritel S.p.A., an Italian
engineering business.
The total cash cost of closure was previously estimated at £8m, of which £6m
would have been incurred in 2006. The result of selling Sasib on the terms
agreed, rather than closure, is that the cash cost to Molins is approximately
£4m lower than the estimated costs of closure.
Sasib designs, manufactures and sells specialist machinery, predominantly
packing machines for the tobacco industry. Sasib has been sold because the sales
being generated by the business do not support the current cost base in Italy.
Operating losses at Sasib in 2005 were £0.6m and £1.4m for the period from 1
January to 24 May 2006.
As at 24 May 2006 Sasib had gross assets of £9.7m (£12.3m at 31 December 2005)
and after deducting bank debt, creditors and other liabilities, had net book
assets of £3.0m. Subsequent to 24 May Molins has injected £4.6m of cash into
Sasib, partly to meet the losses incurred prior to 24 May. The total amount to
be written off on the sale of Sasib is £8.5m including transaction expenses and
Sasib-related inventories held elsewhere in the Molins Group.
Enquiries: Molins PLC
Tel: 01908 219000
Peter Byrom, Chairman
David Cowen, Group Finance Director
Issued by: Citigate Dewe Rogerson
Tel: 020 7638 9571
Margaret George
This information is provided by RNS
The company news service from the London Stock Exchange