N Y L E X
L I M I T E D A N N O U N C E M E N T
NYLEX LTD TAKES ANOTHER MAJOR STEP IN RE-STRUCTURING PROGRAM
WITH $96.1 MILLION OF NEW DIVESTMENTS
The directors of Nylex
Limited today announced another major step in the company’s
successful restructuring program, with divestments of non-core
operations and properties totalling $96.1 million
including:-
• its Pryda and Reid building products businesses
in Australia, New Zealand and Asia to the Illinois Tool Works Inc
Group for A$79.5 million.
• the Henderson’s USA and
Australian lumbar operations to the Teleflex Inc group for A$11.2
million.
• $5.5m million worth of properties surplus to
businesses which have previously been sold.
Today’s moves
take the number of non-core businesses divested since June, 2003 to
13, in the process returning to Nylex Ltd gross proceeds of $151.7
million and surpassing the group’s previously stated expectation
that it would reduce debt by $80 million through asset sales by the
end of 2003.
Nylex's Managing Director and Chief Executive,
Mr Glen Casey, said “We are confident that we are well on the way to
reducing our debt levels to around $130 million, following the
expected completion of our asset divestment program in the first
part of the New Year.
"With the most recent divestments, as
well as the successful completion of a $100 million capital raising
program last month, Nylex is now in the best financial position it
has been in for several years.
“The Pryda Reid sale will
place us in a very strong position to finalize early in the New Year
currently advanced negotiations with a new banking group to
restructure the group’s funding arrangements. This will then
complete the transformation of the group’s financial structure and
consolidate a platform for growth in our core divisions”, he
added.
Mr Casey concluded “going forward we will have a core
of four divisions - Automotive, AH Plant, Nylex Consumer and Nylex
Industrial Products. Together these are expected to generate annual
revenues of more than $750 million. As most of the group is
performing better than last year, we are confident of reporting
improved results for the full year”.
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Director: Kerry Stokes (a very wealthy
man) purchased shares through share purchase plan (40K @
25c), PLUS purchased 14,271,571 @ 34.96c ea on market. That
means he spent close to $5M of his own money to buy more
on-market.
__________
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