royalblue group plc
(“royalblue”) announces
today the disposal of its trade investment in
ICIS Technology Limited (“ICIS”).
Siemens Holdings Plc is acquiring the entire share
capital of ICIS, of which royalblue
held a minority stake.
ICIS was formed in 1989 as an operating division
of royalblue. Following a strategic
review of its operations in 1992, royalblue
divested the business by means of a buy-out backed
by the ICIS management team, and retained a minority
shareholding.
Since that date royalblue has
had no operational involvement in the business
and has treated its holding as a trade investment
at cost. ICIS is a major supplier of software
products to power companies operating in the UK
and abroad. In the year to 31 March 2002 ICIS
reported operating profits of £1.4 million
and net assets of £2.7 million.
The consideration is entirely in cash with initial
consideration of £4.0 million generating
a one-off exceptional gain of £3.6 million
for royalblue in the current
year. There is further consideration of £0.1
million payable subject to certain conditions
being met at completion, and then additional performance
related consideration of up to £0.9 million
subject to results for the period to 30 September
2004.
royalblue intends to use the
proceeds for general working capital purposes
and to finance further product development in
its Fidessa business.
