RNS No 2239d
A H BALL GROUP PLC
4th August 1998 A.H. BALL GROUP PLC ANNOUNCES THAT IT HAS ENTERED INTO A CONDITIONAL
AGREEMENT FOR THE DISPOSAL OF ITS MAIN OPERATING BUSINESS TRADING AS
A.H. BALL AND CO AND T.W. MECHANICAL HEADINGS. THE PRINCIPAL
ACTIVITIES OF THE BUSINESS COMPRISE THE EXCAVATION AND LAYING OF
PIPELINES PRIMARILY FOR THE WATER INDUSTRY.
IN THE YEAR ENDED 31ST MAY 1998 A.H. BALL AND CO AND T.W. MECHANICAL
HEADINGS SUFFERED A LOSS BEFORE TAX OF #616,000.
THE PURCHASER IS THISTLE PIPELINES LIMITED WHICH HAS AGREED TO PAY
#100,000 FOR THE BUSINESS WHICH IS EQUIVALENT TO ITS NET ASSET VALUE
AS AT 31ST MAY 1998, BEING THE EFFECTIVE DATE OF THE TRANSACTION. THE
PURCHASER HAS ALSO AGREED TO ASSUME THE BUSINESS OVERDRAFT, OF
#205,000, AND THE CONTINUING OBLIGATIONS OF THE BUSINESS.
THE DISPOSAL WILL LEAVE EDWARDS HARDY FENCING AS THE SOLE REMAINING
BUSINESS WITHIN THE GROUP.
THE PROCEEDS FROM THE DISPOSAL WILL BE USED TO FURTHER THE DECLARED
ACQUISITION STRATEGY OF THE GROUP, AS OUTLINED IN THE CIRCULAR TO
SHAREHOLDERS DATED 17TH DECEMBER 1997.
THE DISPOSAL IS SUBJECT TO SHAREHOLDERS APPROVAL AND THE COMPANY WILL
BE SENDING A CIRCULAR TO SHAREHOLDERS SEEKING THEIR APPROVAL AT AN
EXTRAORDINARY GENERAL MEETING.
SUBSEQUENT TO THE ANNOUNCEMENT MADE ON 23RD JULY 1998, THE COMPANY IS
NOW IN EXCLUSIVE TALKS WHICH MAY RESULT IN THE ANNOUNCEMENT OF A
REVERSE TAKEOVER. FURTHER ANNOUNCEMENTS WILL BE MADE AS
APPROPRIATE. END DISSSLFFLUAUFSA
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