AutoLogic Holdings plc (“AutoLogic” or the “Company”)
2nd August 2006
OPTION AGREEMENT in relation to SHAREHOLDING IN GLOBAL AUTOMOTIVE LOGISTICS SAS (“GAL”)
The Board of AutoLogic announces that on 31 July 2006 the Company entered into an option agreement (the “Option Agreement” and “Option”) with Wallenius Lines AB (“Wallenius”) granting Wallenius the right to acquire the Company’s 40% shareholding in GAL (the “GAL Shares”). The Option Agreement is conditional on approval by the shareholders of the Company in the event that the Company’s entire issued share capital is not cancelled from the Official List and admitted to trading on the AIM market of the London Stock Exchange following an EGM convened on 9 August 2006. Further details are set out in the attached detailed announcement.
John Merry, Chief Executive of AutoLogic, commented:
“I am pleased that we have reached an agreement which realises value for our shareholding in GAL. The agreement reached with Wallenius should facilitate a restructuring of GAL’s debt and negotiation of long term commercial arrangements with Renault which we expect will in turn result in the exercise of the Option. If the Option is exercised, this will produce further value for our GAL Shares and will free up key management resources to focus on our wholly owned businesses. ”
Neil Johnson, Chairman of AutoLogic, commented:
“This agreement is an important step for AutoLogic, particularly following on from the disposal of our wholly owned Walon France operations in May. I am especially pleased that the funds realised by this transaction also enable us to repay early a significant element of our mezzanine bank debt and consequently reduce our borrowing costs. Whether or not the Option is ultimately exercised, we will continue to concentrate on repaying our mezzanine debt as swiftly as possible and to focus our strategy on developing our wholly owned core businesses and related value added services.
Enquiries:
Autologic: |
01934 523 299 |
Investors: Neville Harris IR Focus |
020 7593 4000 |
Media: Nicholas Potter College Hill |
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