El.En., agreement with the Chinese YOFC to sell the laser cutting division. It is worth 55.3 million

ElEn agreement with the Chinese YOFC to sell the laser

(Finance) – El.En.a company active in the laser market and listed on Euronext STAR Milan, has signed a contract with Yangtze Optical Fiber and Cable (YOFC) framework agreement for the negotiation of one or more transactions for the possible sale to the Chinese company of the majority shareholdings of the companies included in the business unit Laser cutting of the El.En. Group.

YOFC is based in Wuhan, listed on the Hong Kong and Shanghai markets, and specializes in the production of optical fibers and telecommunications components, and recorded a turnover of more than 1.7 billion euros in 2023. Having a high technological and productive background, it is recently entered the business of power fiber optic laser sources through the subsidiary Everfoton, also based in Wuhan. Born from an initiative by PhilipsYOFC was subsequently managed by Prysmianstill the relative majority shareholder who holds approximately 23% of the shares.

Any signing of the definitive contracts will entail theexit of the assets sold from the scope of consolidation integral part of the El.En. group. As of 30 June 2024, the transferred activities had developed a sales half-yearly amounting to 98 million euros (-22.3% compared to the first half of 2023), with a EBIT equal to 2.6 million (+120% compared to 2023), and a net result essentially breaking even, while the PFN had a net debt of 39 million euros.

Following the El.En. operation will retain a 19.30% stake in Penta Laser Zhejiang and approximately 30% stake in Cutlite Penta. YOFC will subscribe to a capital increase in Cutlite Penta of 2.5 million euros. The total expected value is 55.3 million euros.

“We are very satisfied with this opportunity because we believe that a successful agreement is based on the ability to find a strategic and prestigious partner, such as YOFC, which brings with it experience, vision and opportunities to continue to grow the company by enhancing the path already done, but also paving the way for a future of development and innovation with the right balance between tradition and new challenges – commented the president Gabriele Clementi – A fair and well thought out transaction indeed, not only rewards current value but creates new opportunities for both partiesopening new horizons for a prosperous and sustainable future, ensuring that the company continues to grow and progress under new leadership.”

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