Completion of Disposal
Babcock International Group PLC
11 April 2006
11 April 2006
Babcock International Group PLC
Babcock completes disposal of non-core businesses
Babcock International Group PLC ('Babcock' or 'the Group') today announces the
completion of its programme of disposals of the non-core businesses acquired
with Peterhouse Group PLC in 2004.
The disposal programme has been completed following the sale in February 2006 of
the loss making IETG business, the environmental and flow monitoring unit (net
assets approximately £0.1 million) and earlier this month, the disposal of EPS
Gmbh, the German based events and site services business (net assets
approximately £ 1.3 million); and the sale of Eve Trakway Limited, the UK based
site access and events business (net assets approximately £8 million). All
three businesses were sold to their respective management teams. The
consideration received for these businesses was £ 8.0 million, including £2.3
million in unconditional deferred payments.
The turnover of these businesses in the period up to disposal totalled
approximately £26 million of which circa £5.3 million related to IETG, which was
reported within the Group's Health, Safety and Environmental division. Both EPS
Gmbh and Eve Trakway Limited were reported within the Networks division.
Commenting on these transactions, Peter Rogers, Chief Executive Officer of
Babcock, said:
'The sale of these businesses brings to an end the disposal programme that was
initiated following the acquisition of Peterhouse Group PLC. The nature of
these operations did not align with the core activities and competencies of
Babcock and we believe that their future development is more assured outside of
the Group. We are now fully focused on growing our core businesses both
organically and by acquisition.'
For further information please contact:
Babcock International Group PLC
Peter Rogers, Chief Executive 020 7269 7291
Financial Dynamics
Susanne Walker / Richard Mountain 020 7269 7291
Notes to editors:
About Babcock International Group PLC
Babcock International Group PLC is an asset management business. We manage
fixed infrastructure and mobile assets. Babcock integrates labour, technical
capabilities, systems and supply chain partners to meet the outsourcing needs of
customers for 'mission-critical' capabilities.
In the year to 31 March 2005 sales from continuing business were £745 million.
In June 2004 Babcock acquired the Peterhouse Group which brought; Rail and
Networks to the Group.
The Group operates across five core business segments:
Defence Services, supplying facilities management, equipment support and
training services to the armed forces.
Technical Services, providing engineering and logistical support to both the
defence and civil sectors in the UK.
Engineering and Plant Services supplying design, installation and maintenance
support to the energy sector in Africa and the US. It also holds the Volvo
franchise for construction equipment in Southern Africa.
Rail, providing design, renewal and installation services for the UK rail
infrastructure.
Networks, supporting the design, maintenance and renewal of power transmission
and cellular telecommunications networks in the UK.
Babcock's head office is in London and the Company's shares are quoted on the
London Stock Exchange in the support services sector (EPIC:BAB). For further
information, please visit Babcock's website at www.babcock.co.uk.
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the City Code on Takeovers and Mergers (the
'Code'), if any person is, or becomes, 'interested' (directly or indirectly) in
1% or more of any class of 'relevant securities' of VT Group plc or of BAE
Systems plc or of Babcock International Group PLC, all 'dealings' in any
'relevant securities' of that company (including by means of an option in
respect of, or a derivative referenced to, any such 'relevant securities') must
be publicly disclosed by no later than 3.30 pm (London time) on the London
business day following the date of the relevant transaction. This requirement
will continue until the date on which the offer becomes, or is declared,
unconditional as to acceptances, lapses or is otherwise withdrawn or on which
the 'offer period' otherwise ends.
If two or more persons act together pursuant to an agreement or understanding,
whether formal or informal, to acquire an 'interest' in 'relevant securities' of
VT Group plc or of BAE Systems plc or of Babcock International Group PLC, they
will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all 'dealings' in 'relevant
securities' of VT Group plc or of BAE Systems plc or of Babcock International
Group PLC by VT Group plc or BAE Systems plc or Babcock International Group PLC,
or by any of their respective 'associates', must be disclosed by no later than
12.00 noon (London time) on the London business day following the date of the
relevant transaction.
A disclosure table, giving details of the companies in whose 'relevant
securities' 'dealings' should be disclosed, and the number of such securities in
issue, can be found on the Takeover Panel's website at
www.thetakeoverpanel.org.uk.
'Interests in securities' arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an 'interest' by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the
Panel's website. If you are in any doubt as to whether or not you are required
to disclose a 'dealing' under Rule 8, you should consult the Panel.
This information is provided by RNS
The company news service from the London Stock Exchange ISUAVURNWRSAAR