CHARTER plc Further disposal of non-core business
04/02/2004
The Board of Charter plc announces the agreed sale of its 50% interest in GCE Gas Control Equipment AB (“GCE”) to Triton for an initial cash purchase consideration of SEK193 million (£14 million), subject to adjustment based on the audited net asset value of GCE as at 31 December 2003.
This sale of Charter’s 50% interest in GCE, which is held by its subsidiary, Esab AB, will generate a profit of approximately £6 million over the book value at 31 December 2003. The remaining 50% interest in GCE, held by a subsidiary of Linde AG, is also being sold to Triton.
GCE is a European group, headquartered in Malmö, Sweden, specialising in equipment and systems for flow and pressure control of gases. In the year ended 31 December 2002, GCE generated turnover of SEK822 million (£56 million), however this was not included in Charter’s consolidated turnover since Charter has accounted for GCE as an associated company. GCE’s profit before taxation was SEK59 million (£4 million), of which 50 per cent was included in Charter’s consolidated profit before taxation. As at 31 December 2002 GCE had net assets of SEK211 million (£15 million) of which 50 per cent was included in Charter’s consolidated balance sheet.
Completion of this disposal is expected to occur by 28 February 2004 and is conditional, inter alia, upon obtaining certain regulatory clearances in Austria and Poland, and upon there being no material adverse change in GCE in the period between now and completion.
David Gawler, Chairman and Chief Executive, commenting on the disposal said:
“I am pleased to announce a significant further step in Charter’s cash generation programme with the agreed sale of its 50% interest in GCE for an initial cash purchase consideration of £14 million. Following completion of this disposal, Charter will have generated some £54 million of net cash proceeds from non-core asset disposals since the renewal of its syndicated revolving credit facility on 22 July 2003. The proceeds of this disposal will be utilised to reduce the group’s indebtedness.”
Contact
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959
Notes
Triton is a European private equity company that mainly invests in companies in the German-speaking part of Europe and the Nordic countries. With offices in Frankfurt, Stockholm, and London, Triton has equity of EUR650 million, which is made available to Triton by leading European and international investors.