TT sells remaining non-core general industrial assets

12th Jul 2011 10:16

Electronics and sensors supplier TT Electronics' shares inched lower despite the company reaffirming that the strong trading conditions, which were reported in May, have continued through to the end of the first half. In addition to the trading update, TT Electronics said it has sold its subsidiary AEI Compounds, which manufactures polymer compounds for wire, cable and pipe industries, to privately-held Saco Polymers for £8.6m.Under the terms of the deal, the consideration for the sale is £8.6m in cash and is subject to an adjustment to the extent that the value of the total net assets delivered is greater or less than £7.2m. The company said the proceeds will be used to reduce group borrowings."The disposals, identified in our strategic review in 2009 and comprising nine businesses, have generated more than £30m of net proceeds, considerably ahead of the Board's initial expectations," group chief executive Geraint Anderson said.Singer Capital analyst Jo Reedman said that the cash disposal of TT Electronics' remaining non-core general industrial business suggests that net debt should reduce to approximately £15m at the end of the first half. Shares of the company fell 1.9% to 199.5p in morning trading in London.AR