LAM Lamprell Plc

TIDMLAM

RNS Number : 5368Y

Lamprell plc

02 December 2014

2 December 2014

LAMPRELL PLC

("Lamprell" and with its subsidiaries the "Group")

DISPOSAL OF LITWIN SERVICE BUSINESS

Lamprell (ticker: LAM), a leading provider of fabrication, engineering and contracting services to the onshore and offshore energy industry, announces that it has entered into an agreement for the sale of one of its smaller non-core service businesses, Litwin PEL LLC ('Litwin'), to Nauvata group of companies for an enterprise value of US$ 3.0 million. Litwin is an engineering and minor EPC contracting company that serves the oil and gas, chemical and petrochemical sectors in Abu Dhabi.

As previously announced, the Board has been reviewing the ownership of certain service businesses which do not form part of the Group's core business. Litwin has been operating in the UAE since 1991, currently employing approximately 80 staff, and was included among the group of entities acquired by the Company in 2011. In 2013, Litwin delivered an operating loss of US$ 5.3 million (based on the 2013 audited accounts). Audited gross assets for the Litwin business as at 31 December 2013 totalled US$ 9.1 million, however there is an overall net liabilities position in the business.

The Group will continue with its process to dispose of the other non-core service businesses but only if acceptable terms can be obtained and subject to Board approval.

Lamprell will use the proceeds from this disposal to support general working capital requirements on its core business streams.

- Ends -

Enquiries:

 
  Lamprell plc 
   James Moffat, Chief Executive 
    Officer                                   +971 (0) 4 803 9308 
   Tony Wright, Deputy Chief Financial 
    Officer                                   +971 (0) 4 803 9308 
   Natalia Erikssen, Investor Relations       +44 (0) 7885 522989 
 
  Tulchan Communications, London    +44 (0) 207 353 4200 
   Christian Cowley 
   Martin Robinson 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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