600 Group asset sale is likely conclusion to Chinese company's interest
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Following talks with China's Qingdao D&D Investment Group Co. Ltd, which last year expressed interest in acquiring the 600 Group, it has been announced by the group that it has 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".
On 11 September 2013, the 600 Group said it had received an approach from Qingdao D&D Investment Group Co. Ltd that may or may not lead to a cash offer being made for the company. (See news story here)
Discussions are now ongoing 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 600 Group, headquartered in Heckmondwike, West Yorkshire, is home to the brands Colchester (lathes), Harrison (lathes), Gamet (bearings), Pratt Burnerd (workholding) and Electrox (laser profiling). Clausing Industrial is a further brand/operation, although this is purely a US phenomenon, through which the group additionally sells factored product.
The company says that a further announcement regarding the potential sale of assets to D&D will be made "when appropriate".
See feature article here for a recent 600 Group profile.
