Lamprell plc Disposal of Litwin service business (5368Y)
December 02 2014 - 2:00AM
UK Regulatory
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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