Press Release |
8 December 2015 |
Vianet Group plc
("Vianet" or the "Group")
Vianet sells Fuel Division to Wayne Fueling Systems
Vianet Group plc (AIM: VNET), the leading provider of real time monitoring systems, data management services, and actionable insights for the leisure and vending sectors, is pleased to announce that it has agreed to sell Vianet Fuel Solutions Ltd ("VFS") to Wayne Fueling Systems UK Limited ("Wayne") (the "Transaction"). The Transaction is expected to complete on or around 31 January 2016.
Vianet will receive a cash consideration of £3.5m on a debt free cash free basis, subject to a potential adjustment for the working capital of VFS at completion. Intercompany balances will be written off prior to completion. The impact of the Transaction on the retained profit and overall equity of the Group is expected to be negligible; the impact of the profit on the sale of the net assets of VFS will be set off against the impairment of goodwill. The cash proceeds from the sale of VFS, net of disposal costs, is expected to be in the region of c. £3m and will be held in cash for the foreseeable future to support the Group's growth strategy.
VFS has developed an integrated toolbox of best-in-class information management and associated forecourt products, and during the past two years VFS has made significant commercial progress and has established a strong reputation in the UK forecourt sector.
Wayne is a global provider of fuel dispensing, payment, automation, and control technologies for retail and commercial fuel stations. Through a global network of distributors and service partners, Wayne products are sold and supported in over 140 countries around the world.
VFS reported a pre-exceptional £0.026m profit on revenue of £4.2m in the 12 months to 31 March 2015 and a profit of £0.224m in the six months ended 30 September 2015 on revenue of £2.89m.
The disposal of VFS will enable Vianet to focus on the core businesses of Leisure and Vending Solutions and consolidate its financial resources. Vianet will make a further announcement to the market on completion of the Transaction, which is expected to occur on or around 31st January 2016.
James Dickson, Chairman, stated: "Over the past two years we have made significant progress to establish a strong reputation for Vianet Fuel Solutions in the UK forecourt sector and to turn the business around to a good level of profit this year. VFS operates in a competitive landscape which is increasingly dominated by major global players, such as Wayne, and therefore we believe it is now, strategically, a good time for the Group to sell VFS to Wayne who will continue to build on the strong foundations we have built."
"Whilst it will be sad to say farewell to the VFS team, I am pleased that there is a great fit with Wayne who will take VFS to the next stage of development and growth."
"The Board is confident of the medium and long term prospects of the Group and its Leisure and Vending businesses where the focus will fully turn. The Group's progress provides an encouraging outlook for 2016 and the Board remains committed to delivering shareholder value".
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About Vianet
The Vianet Group provides real time monitoring systems, data management solutions, actionable data insights, and associated services for the leisure and vending sectors. Since its Admission to AIM in 2006, the Group has grown from its core Brulines beer monitoring business both organically and through strategic acquisitions to widen its offering to pub and bar retailers with its industry leading product iDraught as well as developing new businesses, especially in vending telemetry.
Headquartered in Stockton-on-Tees, Vianet employs more than 160 people. For further information, please visit www.vianetplc.com
