Disposal of Interest in Evervision

 

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RNS Number : 7546T 
Densitron Technologies PLC 
04 October 2010 
 

 
                           Densitron Technologies plc 
 
                       Disposal of Interest in Evervision 
 
Densitron Technologies plc ("Densitron" or the "Group") today announces that it 
has disposed of its entire 24.48% shareholding in Evervision Electronics Co Ltd 
("Evervision") to Everpower Investment Corp. Ltd and Forever Investment Corp. 
Ltd for consideration of GBP3.4 million in cash. 
 
Evervision is a Taiwanese display manufacturer with factories in Taiwan and 
mainland China, in which Densitron owns 24.48% of the share capital (the 
"Evervision Interest"). 
 
The Group's directors have worked hard to find means of generating a return on 
this asset. In December 2009 the Group received a payment by way of capital 
reduction of GBP1.2m and received a further GBP0.5m on 3 September of this year. 
The disposal of the remaining shares in Evervision will realise a further 
GBP3.4m resulting in a total return from the investment over the last 12 months 
of GBP5.1m. 
 
The Group did not have significant influence over Evervision and the results of 
Evervision have never been consolidated in the Group's accounts. The Evervision 
Interest was held as an asset available for sale in the Group's accounts at a 
value of GBP4.6m at 30 September 2010. The disposal will trigger an exceptional 
loss of approximately GBP1.3m, although it should be recognized that despite the 
reduction in net asset value, the net asset value will now consist of a 
substantial amount of free cash. 
 
The capital reductions and disposal are the only significant returns that the 
Evervision Interest has provided to the Group since its acquisition in 2001 and, 
due to a change in strategy by the Evervision Board it is unlikely that further 
capital reductions or other distributions will be made by Evervision in the near 
to medium term. The board, therefore, considers that the sale represents the 
best opportunity for the Group to realise a substantial return from this 
investment. The board is considering several options on how to use these funds, 
including an acquisition strategy. 
 
Evervision remains a supplier to the Group and the Group does not anticipate any 
operational impact as a result of the disposal. 
 
Further information: 
 
+------------------------------+------------------------------+ 
| Densitron                    | Westhouse Securities Limited | 
| Grahame Falconer / Tim       | Tim Metcalfe / Martin        | 
| Pearson                      | Davison                      | 
| Tel: [phone]           | Tel: [phone]           | 
|                              |                              | 
+------------------------------+------------------------------+ 
 
 
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