Eleco Sells Eleco Bauprodukte To MiTek Industries

1st Jul 2010 10:14

LONDON (Dow Jones)--Eleco PLC (ELCO.LN), said Thursday that it has sold the entire issued share capital of Eleco Bauprodukte (EBP), its German connector plate business, to MiTek Industries, for a total consideration of GBP3.9 million. MAIN FACTS: -The consideration has been satisfied by the issue of GBP3.9 million of Loan Notes of MiTek, redeemable in full on June 30. -Eleco also announces the cessation of the EBP-related legal dispute noted in the interim results for the Group as announced on March 2. -Legal costs related to the resolution of this dispute amounted to GBP554,000 at Dec. 31, 2009. -Since then additional legal costs of £417,000 have been incurred, resulting in total legal costs incurred and expensed in the year of GBP971,000. -The proceeds of the sale of EBP will strengthen the Group's balance sheet and the cessation of the EBP related legal dispute will result in the cessation of the significant legal costs incurred in connection with the dispute. -Therefore, as a consequence, Eleco will be much better placed to implement its recovery strategy. -Shares closed Wednesday at 21 pence. -By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; [email protected] (END) Dow Jones Newswires July 01, 2010 05:14 ET (09:14 GMT)