£4.1 million disposal of Spanish subsidiary Walon Iberia, S.L.
27 June 2007
AutoLogic Holdings plc (“AutoLogic” or the “Group”) announces that as part of the Group’s continued focus on its core businesses, it has entered into a conditional contract to sell its Spanish subsidiary Walon Iberia, S.L. to Bergé Automotive Logistics, S.L.
The full consideration payable to AutoLogic on completion is €6.0m (£4.1m using an exchange rate of €1.48/£1), to be adjusted for net assets at completion, of which €0.6m (£0.4m) will be held in escrow pending the expiry of certain warranty liabilities.
The estimated net proceeds of the sale after tax, expenses and planned restructuring costs are expected to be €2.5m (£1.7m). This will give rise to an estimated profit on the transaction of €1.4m (£0.9m).
The contract is conditional upon AutoLogic undertaking certain administrative tasks within Walon Iberia and it is anticipated that completion will take place in July. AutoLogic retains the right for its VMEX subsidiary to trade in the Spanish market.
For information, Walon Iberia provides new vehicle storage and distribution services primarily to vehicle manufacturers and dealers in Spain. For the year ended 31 December 2006, Walon Iberia generated a pre-tax profit of £0.4 million (excluding other operating income of £2.1 million) on turnover of £22.3 million. The net assets of Walon Iberia as at 31 December 2006 under IFRS were £8.9 million. These assets have been reduced in 2007 by capital reduction and dividends of £5.7 million in total, remitted to AutoLogic.
The resultant cash receipt on completion will be used to reduce existing borrowings within AutoLogic.
John Merry, Chief Executive of AutoLogic commented: “I am pleased to report the successful sale of Walon Iberia to Bergé as it marks one of the final steps in our strategy to restructure the AutoLogic Group. ”Combined with the disposal of the Spanish freehold site at Meco, Madrid announced in December 2006, AutoLogic has realised gross proceeds of €19m (£12.8m) in divesting of its Spanish subsidiary, generating net cash of €12m (£8.1m). “The disposal will enable the Group to focus on the growth and development of its existing businesses and to further reduce borrowings.”
For further information please contact:
| AutoLogic Holdings plc John Merry |
Tel: 01934 523299 |
| Arden Partners Chris Fielding |
Tel: 020 7398 1638 |
| Media: Madano Partnership Matthew Moth / Mark Way |
Tel: 020 7593 4000 |
| Investors: IR Focus Neville Harris |
Tel: 020 7593 4016 |