Coral Products (LON: CRU) is the biggest mover in London on Thursday following the announcement that it will sell its Coral Products (Mouldings) and Interpack Limited businesses.
The plastics distributor and manufacturer said One51 ES Plastics Ltd, a subsidiary of IPL Plastics Group, will purchase the two companies for a combined £7.9 million. Coral Products Limited will continue to hold the Haydock site where Coral Products (Mouldings) operates.
The conclusion of the deal is subject to certain conditions, one of which being the completion of works at the Haydock site, which is expected to be finalised by the end of January.
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Coral said that the sales will provide the company with the opportunity to “crystallise an attractive return on invested capital with respect to the Sale Companies, reduce net debt and also to provide additional financial flexibility to further develop and support the recent progress of the Continuing Group.”
The deal is expected to be completed in February 2021.
Shares of Coral Products are up over 63% at 10p, after initially reaching highs of 10.95p earlier in the session.