Vesuvius narrows focus after disposal of non-core precious metals unit

Vesuvius, the FTSE 250 metal flow engineering firm that was formed from the demerger of Cookson last year, is to offload its non-core Precious Metals Processing Division (PMP) and return proceeds of the disposal to shareholders.

Vesuvius, the FTSE 250 metal flow engineering firm that was formed from the demerger of Cookson last year, is to offload its non-core Precious Metals Processing Division (PMP) and return proceeds of the disposal to shareholders.

PMP will be sold to Heimerle + Meule (H+M), a German supplier in the precious metals industry, for a cash consideration of €56.8m, though this will be subject to closing balance sheet adjustments. H+M is a subsidiary of German conglomerate L Possehl & Co.

Vesuvius said that the majority of these funds will be returned to shareholders through a share repurchase, while the rest will be used to reduce existing borrowings.

"Following the recent creation of Vesuvius plc through the demerger of Cookson, this is a further important strategic step for our company. It represents the sale of a non-core asset and the final exit from precious metals processing, leaving Vesuvius principally focused on our core competence of molten metal engineering, serving the global steel and foundry industries," said Chief Executive Franois Wanecq.

"As a result of this disposal, we intend to return the majority of the net proceeds to shareholders through an on market repurchase of shares, demonstrating our desire to exercise strong capital discipline and generate superior returns. Our strong balance sheet allows us to do this and still remain able to fund attractive growth opportunities."

Shares in Vesuvius were up 0.16% at 365.2p by 08:10 on Wednesday.

BC

Recommended

Britain’s ten most-hated shares – w/e 20 May
Stocks and shares

Britain’s ten most-hated shares – w/e 20 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
23 May 2022
Britain's most-bought shares w/e 20 May
Stocks and shares

Britain's most-bought shares w/e 20 May

A look at Britain's most-bought shares in the week ending 13 May, providing an insight into how investors are thinking and where opportunities may lie…
23 May 2022
Director dealings w/e 20 May: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 20 May: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
23 May 2022
Three high-yielding FTSE 250 dividend stocks I’d invest in right now
Share tips

Three high-yielding FTSE 250 dividend stocks I’d invest in right now

The average FTSE 250 dividend yield is around 2.4%., but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income inve…
23 May 2022

Most Popular

Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Barry Norris: we’re already in the 1970s. Here’s how to invest
Investment strategy

Barry Norris: we’re already in the 1970s. Here’s how to invest

Merryn talks to Barry Norris of Argonaut capital about the parallels between now and the 1970s; the transition to “green” energy; and the one sector w…
19 May 2022
Share tips of the week – 20 May
Share tips

Share tips of the week – 20 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
20 May 2022