LONDON: PipeHawk (AIM: PIP) announces that it has entered into a binding conditional sale and purchase agreement with Hong-Kong incorporated Leidi Global Supply Limited in connection with the proposed disposal of the entire issued share capital of Utsi Electronics Limited for a cash consideration of £1.0 million.
As part of the consideration, Pipehawk is to receive a £25k deposit which is non-refundable save for the NSI Act Condition (see below) not occurring or PipeHawk electing not to complete the Disposal. The balance of the £1.0 million cash consideration to be received by PipeHawk will be payable on completion of the Disposal and will be applied to the Group’s working capital requirements.
Following completion of the Disposal, the Group’s activities will be concentrated across Thomson Engineering Design Limited and Adien Limited.
The gross assets the subject of the Disposal as at 30 June 2025 were approximately £430,000 and generated a loss before tax in the year ended 30 June 2025 of approximately £464,000.