Cobham announces sale of AvComm, Wireless businesses to Viavi Solutions
Source - SMW
Cobham plc said it entered into an agreement 1 February 2018 to sell its AvComm and Wireless test and measurement businesses to Viavi Solutions Inc. for an all-cash consideration of US$455m.
The sale comes as the company continued on its turnaround programme as it strives to reduce its debt overhang.
'The Board intends to use the net divestment proceeds (subject to certain post-completion adjustments and expenses) to strengthen the balance sheet and, coupled with existing cash, to pay down approximately £440m of debt,' the company said. David Lockwood, Cobham Chief Executive Officer, said: 'I am delighted that we have been able to conclude the portfolio review of the AvComm and Wireless test and measurement businesses expeditiously, after a competitive auction process.' 'Today's announcement is a good deal for Cobham shareholders, as we can now focus on delivering value-add technology and capabilities to our defence, aerospace and space customers, supported by a more resilient balance sheet.'
At 8:05am: (LON:COB) Cobham PLC share price was +2.95p at 127.7p