Volvere plc (AIM:VLE), the turnaround investment company, is pleased to announce the disposal of Sira Certification Service, Sira Test and Certification Limited, Sira Consulting Limited and Sira Environmental Limited (together “Sira Certification”) to CSA Certification (UK) Ltd, a wholly-owned subsidiary of the Canadian-based CSA Group (“CSA”) for a maximum cash consideration of £8.6 million.
Highlights
- Initial cash consideration of £8 million (“Initial Consideration”)
- Deferred cash consideration of a further £0.6 million dependent upon the achievement of certain financial targets by Sira Certification in 2009 and 2010
- At Completion, net of costs and other expenses the Group will have cash and marketable securities of approximately £20 million to invest in accordance with its investing policy; and
- At Completion, Volvere will have net assets per share of approximately £3.20 representing a considerable premium to the Group’s current share price.
Commenting on the successful disposal, Jonathan Lander, CEO of Volvere plc, said: “We have been delighted with the performance of Sira Certification since we acquired the business in September 2005. Its acquisition by such a respected organisation as CSA Group is testament to the hard work of management and staff. Under CSA Group ownership Sira Certification has a fantastic future and will present enhanced opportunities for the business, its staff and its clients.
“Following the disposal of Sira Certification, Volvere is in an extremely strong position with cash resources of approximately £20 million available for re-investment. The Group’s investment strategy of selecting distressed businesses with considerable turnaround opportunity remains core to our proposition. We continue to review the
numerous investment opportunities in the private and public company markets and we remain committed to delivering shareholder value.”