LONDON (dpa-AFX) - SIG Plc. (SHI.L) said that it expects, in both the specialist distribution and roofing merchanting businesses, significantly lower underlying profitability for the full year than its previous expectations.
'The Group has been reporting during the year a deterioration in the level of construction activity in key markets and highlighting a number of key indicators pointing to further weakening of the macro-economic backdrop, notably in the UK and in Germany,'the company said.
In a separate press release, SIG said that it agreed to sell its Air Handling Division to France Air Management SA for an enterprise value of 222.7 million euros or 198.3 million pounds on a cash free, debt free basis. It is expected to complete the sale in the first-quarter of 2020.
The company noted that it will use the net cash proceeds of at least 130 million pounds to reduce its financial indebtedness. The majority of any residual net cash proceeds will be used to make a return to shareholders.
Separately, SIG said it agreed to sell Building Solutions (National) Limited to Kingspan Group for a consideration of 37.5 million pounds on a cash free, debt free basis.
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