Tate & Lyle to Sell Sugar Refining Unit For GBP211M

1st Jul 2010 07:19

LONDON (Dow Jones)--Tate & Lyle PLC (TATE.LN) announces Thursday it has signed an agreement for the sale of its E.U. Sugar Refining operations, or E.U.S., to American Sugar Refining, Inc. for GBP211 million payable in cash, subject to closing adjustments for net cash and working capital, with the proceeds used to reduce Tate & Lyle's net debt. MAIN FACTS: -E.U.S. consists of the cane sugar refineries in London, U.K., and Lisbon, Portugal, the Lyle's Golden Syrup factory in London, U.K., the associated sugar and syrup brands and the Tate & Lyle Process Technology consulting business. -In the year ended March 31, these businesses had external sales of GBP689 million and made an adjusted operating profit of GBP14 million (after transitional aid of GBP17 million), and had gross assets of GBP374 million at March 31. -The sale excludes historic U.K. pension assets and liabilities and is expected to give rise to a book loss on disposal, before costs, of GBP55 million, subject to exchange rate movements and the timing of completion. -The transaction is expected to be neutral to the Group's adjusted earnings per share on total operations in the 2011 financial year. -The completion of the transaction, which is conditional upon anti-trust clearance in Portugal, is expected to occur in two months. -Payment of GBP5 million of the consideration is contingent on the transfer of certain joint venture shareholdings that are subject to pre-emption rights held by the other shareholders. -Tate & Lyle has provided American Sugar Refining, Inc.with a perpetual worldwide license to use the Tate & Lyle brand in connection with the retail sale of sugar and in other limited circumstances. -Also announces the launch of processes to sell the remaining businesses within the Sugars division, principally Molasses and Vietnamese sugar. -The Sugars division will be classified as discontinued in the Interim Results to Sep. 30. -Shares closed Wednesday at 449.7 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 01, 2010 02:19 ET (06:19 GMT)