Industrial technology company Savcor (ASX:SAV) has revealed it expects to close the $35 million sale of its Savcor FACE division by November 30.
In a statement, Savcor said it cannot yet determine whether the sale of the telecom and consumer electronics products division to Cencorp will result in a profit or loss, blaming “factors including the valuation of the shares to be received and prevailing exchange rates.”
Any profit or loss on the sale will be brought to account during calendar 2010, the company said.
Savcor entered negotiations for the sale of Savcor FACE, which develops products including electro magnetic interference shielding and antennas used in mobile phones, in January. Shareholders approved the transaction last month.
Buyer Cencorp is, like Savcor, a subsidiary of Finland's Savcor Group Oy, which owns 64.1% of Savcor in Australia and 62.4% of Cencorp.
Under the offer, around $10 million of the purchase price will be paid in cash, with the remainder doled out in shares.
Savcor said its continuing business, Savcor ART, earned ebitda of $5.9 million for calendar 2009 and expects a similar result for this year. Savcor ART provides industrial technology for Australia's mining, energy and infrastructure sectors.
Following the sale, Savcor in Australia will comprise of this business, a corporate function and its investment in Cencorp.