600 Group looks at assets sale to Chinese company
ENGINEERING business 600 Group today said it is looking to pursue an asset sale of parts of its business with a Chinese suitor which had been looking to takeover the group.
The Leeds-based company was first approached by Chinese industrial giant Qingdao D&D Investment Group in September and a deadline was set for 5pm on January 1 to allow talks between the two on a possible deal.
However this morning 600 Group said that “detailed discussions” with D&D management had concluded that an asset sale rather than an offer for the company “represents the most appropriate way to facilitate a value enhancing transaction for shareholders”.”
It added in a statement to the Stock Exchange: “Consequently discussions are on-going with D&D regarding a potential sale of selected 600 Group assets which, if successful, is likely to result in a transaction requiring shareholder approval.”
The move means that the Yorkshire business is no longer now deemed to be in a formal offer period for the company under City rules on takeovers and mergers and talks between it and D&D can continue without a deadline for a conclusion.
600 Group said a further announcement would be made on a potential assets sale “when appropriate”.
600 Group designs and distributes machine tools and precision engineered components and laser marking systems with operations in Europe, North America and Australia selling into more than 180 countries worldwide.
