Elektron PLC
10 August 2007
FOR IMMEDIATE RELEASE
10 August 2007
ELEKTRON PLC
('Elektron' or the 'Company')
Disposal of Sifam properties
Following completion of the purchase of the entire share capital of Sifam
Instruments Limited ('Sifam') announced yesterday for a cash consideration of
£2 million (subject to adjustment), the Board of Elektron announces that it has
exchanged contracts for the sale and leaseback of the two freehold factory
properties owned by Sifam (the 'Sifam Properties') for a cash consideration of
£2,336,250. Completion has already taken place on one of the properties. The
proceeds from the sale of the other property totalling £938,500 will be received
once certain registration documents have been processed by the Land Registry.
The Sifam Properties had previously been included in Sifam's audited accounts as
at 2 December 2006 at a value of £883,000 and comprise 68,000 square feet of
industrial premises in Torquay.
The Directors have received a third party open market valuation of the Sifam
Properties as at 3 August 2007, prepared by Pennycuick Collins inc Ralph &
Janes, Chartered Surveyors, ('Pennycuick Collins') in accordance with the
guidelines contained within the RICS Appraisal and Valuation Manual (5th
Edition published 1 May 2003). Pennycuick Collins have confirmed that the
purchase price mentioned above is fair and reasonable.
Under the two 10 year leases the aggregate rental payable by Elektron is
£215,000 per annum following a 12 month rent free period. The proceeds from the
disposal of the Sifam Properties will be used to reduce Elektron Group debt. The
Directors anticipate that the transaction will not materially affect earnings
(excluding negative goodwill).
The purchaser of the Sifam Properties is Panther Securities Plc ('Panther'),
which together with its Chairman Mr Andrew Perloff and associates, holds
13,260,909 ordinary shares of 5p each in Elektron representing 15.3% of the
issued share capital. Accordingly, the disposal of the Sifam Properties to
Panther is a related party transaction for the purposes of the AIM Rules. 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 336308
Roland Cornish
Beaumont Cornish Limited
Tel: 020 7628 3396
ENDS
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