Unidare to sell British division

ENGINEERING company Unidare is to sell its British- based business, Eland Cables, to a management team for €5.9 million, subject to shareholder approval.

In late November the group announced it was considering the sale of all of its assets for the benefit of its shareholders.

At the time it announced it had already done a deal to sell its US distribution subsidiary ORS Nasco to a US private investment firm for $81 million (€67m).

It said also it was looking at the possible sale of its other remaining business, Eland Cables in Britain.

This latest announcement sees the beginning of the end of the group as a trading operation.

Eland is mainly involved in the distribution of electrical cables and accessories.

It generated pre-tax profits of €1m on sales of €23m in the year to the end of September.

Shares in Unidare were 14 cent lower at €2.80 in Dublin yesterday afternoon.

Unidare reported pre-tax profits before exceptional items of €11.5m for the year to the end of September in late November, up from €9m last year.

That figure excluded a €29.2m once-off profit from the sale of its Dutch water heater subsidiary Daalderop.

In November, when the preliminary results for the year to end September were announced, the group also issued a trading update.

The board reported that it was exploring disposal options in respect of Eland.

If the disposals were successful, the board said it was its intention to seek approval for the winding up of the company and the distribution of any remaining assets to shareholders.

The proposed disposal of ORS Nasco is conditional on the approval of Unidare shareholders at an extraordinary general meeting of the company, due to be held on December 19 next.

It was also disclosed that executive directors Jack Hayes and Kevin Gallen were put on an incentive scheme to help them push the sale of Eland.

Mr Hayes is to get over £83,000 (€123,000) if the deal goes through and Mr Gallen over £41,000 (€60,000).