LONDON, UK: Elektron Technology plc has entered into a conditional agreement with a special purpose vehicle wholly-owned by Equistone Partners Europe to sell the entire issued share capital of Elektron Technology UK Limited (which holds the Bulgin business) for a total cash consideration of £105 million.
Net proceeds after all costs including the settlement of the LTIP liability are expected to be in the region of £94 million. The proposed transaction creates significant value for shareholders and will result in a major restructuring of the Group.
Commenting Keith Daley, Executive Chairman, said: “We have been working on a sale of Bulgin for many months and are delighted to have reached agreement on this deal which will realise significant value for Shareholders.
Subject to shareholder approval, once we have completed the transaction the remaining group and team shall be able to focus all of our energies on Checkit. The vision is to create a global leader in real-time operations management software. The early signs of the Checkit/Next combination are encouraging and we view the future with enthusiasm and confidence.”