Turbo Power Systems Inc Ultimate parent company update (7947W)

TIDMTPS

RNS Number : 7947W

Turbo Power Systems Inc

24 August 2015

Turbo Power Systems Inc

("TPS" or the "Company")

Ultimate parent company update

TPS (AIM: TPS), the innovative high-speed electrical machines and power electronic systems provider, announces a change of ultimate parent company.

Hitherto the Company's ultimate parent company has been Vale Soluções em Energia S.A. ("VSE"), the Brazilian energy solutions company, which through Tao Sustainable Power Solutions (UK) Ltd ("TAO") owns 89.4% of the current issued share capital of the Company.

As noted in the Annual Report 2014, VSE's major shareholders have been Vale S.A. ("Vale") Brazil's largest mining company, and Banco Nacional de Desenvolvimento Econômico e Social ("BNDES"), Brazil's National Development Bank.

VSE has informed the Company that Vale purchased BNDES' shareholding interest in VSE, which received final antitrust approval on 18 August 2015. Additionally, Vale purchased the minority interest that Sygma Group S.A. ("Sygma") had in VSE. Both share transfers are scheduled to complete during the week commencing 24 August 2015.

Once completed Vale will own 100% of the issued share capital of VSE.

Accordingly, Vale will be the ultimate parent company of TPS.

On 20 February 2015 shareholders were informed that the Board was conducting a Strategic Review of the Company's business and as part of this review is looking at a potential sale of the Company. Lincoln International LLP is assisting the Board in this process. This change in the ownership of VSE is not part of the Board's Strategic Review.

Further announcements on the Strategic Review will be made in due course, as appropriate. In the meantime there can be no certainty that any potential transaction in relation to the Company will proceed, or as to the terms of any such transaction. As previously advised, the Company may discontinue the Strategic Review process at any time.

The Company is a Canadian Business Corporation, carrying on the business under the Business Corporation Act of Yukon, Canada and is not subject to the provisions of the UK City Code on Takeovers and Mergers.

For further information, please contact:

 
 Turbo Power Systems 
  Fernando Senhora, Chairman                 Tel: [phone] 
  Carlos Neves, CEO                          Tel: [phone] 
  Charles Rendell, CFO                       9200 
 
 finnCap (NOMAD, broker and UK financial   Tel: [phone] 
  advisor)                                  0500 
  Ed Frisby, Emily Watts 
 
 Kreab (financial public relations)        Tel: [phone] 
  Robert Speed                              1800 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 24, 2015 02:00 ET (06:00 GMT)