thorn emi sells light fittings arm: focus narrows as middle eastern group pays pounds 162m for business

by:EME LIGHTING     2020-04-05
Music and electronics group thorn emi took another important step yesterday to re-focus its event by selling its lighting business to investment group Investment Corp in the Middle East for £ 162.
Thorn will receive £ 137 in cash and £ 15 in loan notes that will expire over the next seven years and will retain shares.
The move is part of Thorne\'s strategy to focus on recording music and consumer e-leasing.
Earlier this year, the company sold a stake in Thames TV station 59 for £ 58 and a fire-fighting appliance company for £ 40 for industrial group Williams Holdings.
It is understood that Thorn will also sell its Defense Department door to GEC for about 140.
The group also has a security and electronic business that is said to be available for sale in the appropriate circumstances.
The lighting business was initially part of the larger lighting manufacturing and accessories business.
Thorn sold the lighting business to an American company in January 1991, and since then Thorn has been looking for buyers for the rest.
Sale will result in after-sales service
An estimated tax abnormal gain of £ 44, but under the new accounting rules covering goodwill adjustments, this would translate into a fee of £ 1 pounds.
Thorne said that this will be largely offset by the gains of about £ 34 from Pearson\'s April disposal of television rights on the Thames.
The lighting business, headed by Hamish Bryce, has seen its operating profit increase from five to nearly 17 in the year to March 31.
The turnover is 344, the third of which is from the UK.
Net assets before internal assets are deducted
The group borrowed about £ 115 last year.
The sales agreement provides that Thorn Lighting will continue to use Thorn names related to lamps and lanterns worldwide.
Sir Colin Southgate, chairman of the group, said: \"This disposition is another step in soon EMI\'s focus on corporate strategy with world leadership.
Proceeds from the sale will be used to reduce group debt.
A spokesman estimated that the proportion of borrowing to net assets would fall by 10 percentage points to about 40 percentage points.
Last month, the group reported that taxable profits for the year ended March 31 almost doubled to £ 290, thanks to a strong down payment from Virgin Music Group, which last year started with its founder.
About 10 years ago, the investment company was founded with the financial support of the rich Middle East businessmen.
It has invested about 3 pounds since then.
5bn in nearly 50 commercial enterprises.
It has about 12 companies around the world, including controlling stakes in American retailers Gucci and Saks Fifth Avenue.
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