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Carclo disposes of Wipac Czech unit
20th Nov 2019 09:57
(Sharecast News) - Injection moulded plastic parts manufacturer Carclo disposed of its Wipac Czech unit to Magna Automotive on Wednesday for a total of €1.1m.
Carclo sold its 100% stake in Wipac, which designs and develops automotive lighting, for a total consideration of €1.1m, which was made up of an €800,000 cash payment and the assumption of €300,000-worth of outstanding liabilities.
The cash proceeds will be used to reduce the group's outstanding net debt following completion of the transaction on 26 November 2019.
Carclo also noted that discussions regarding a potential sale of its principal Wipac UK business remained ongoing, with negotiations now in "an advanced stage".
"However, there remains no certainty that a successful sale of this business will occur nor as to the terms or structure of any such transaction," said Carlo.
As of 1045 GMT, Carclo shares had shot up 11.31% to 12.80p.
Carclo sold its 100% stake in Wipac, which designs and develops automotive lighting, for a total consideration of €1.1m, which was made up of an €800,000 cash payment and the assumption of €300,000-worth of outstanding liabilities.
The cash proceeds will be used to reduce the group's outstanding net debt following completion of the transaction on 26 November 2019.
Carclo also noted that discussions regarding a potential sale of its principal Wipac UK business remained ongoing, with negotiations now in "an advanced stage".
"However, there remains no certainty that a successful sale of this business will occur nor as to the terms or structure of any such transaction," said Carlo.
As of 1045 GMT, Carclo shares had shot up 11.31% to 12.80p.