Skellerup close to final negotiations in divestment of non-rubber business

Christchurch, New Zealand - Skellerup Holdings says it is in negotiations with parties who wish to buy its non-core activities. The company said in June that its core business is now industrial rubber goods.

Keith Smith, chairman of the board told shareholders at the company's annual meeting, "It has become increasingly clear that our strongest growth prospects are in international markets for technical polymer products used in various industrial applications." Smith added that the new strategy involves disposals, and negotiations of non-core businesses. He said, "We are currently in discussion with parties who have expressed interest in purchasing these businesses. Our expectation is that these discussions will be concluded over the coming weeks. If all the assets under discussion are sold we would anticipate total realisations in excess of $40 million and a profit above book value in excess of $10 million."

Smith added that he expects to retire at the end of December this year.

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