PGI Pgi Grp

RNS Number:7053F
PGI Group PLC
05 July 2006



PGI Group plc

5 July 2006


PGI Group Plc ("PGI") announces that its wholly owned subsidiary P & G
Industries Plc ("the Vendor"), has entered into a conditional agreement to sell
the business of its Chillington Manufacturing division, the Group's wheelbarrow
manufacturer to Bescot Construction Tools Limited ("the Purchaser").


The total consideration for the transaction will be #750,000 subject to
adjustment equal to the amount, if any, by which the net working capital at
completion exceeds or falls short of #293,000.


Of the total consideration, #250,000 will be paid on completion. Any adjustment
for the working capital, as noted above, is due to be paid 15 days following
completion. Thereafter, the balance of the consideration is due to be paid on
the following dates:

                                                                             #
                                                                             ---
31st December 2006                                                     140,000
31st December 2007                                                     180,000
31st December 2008                                                     180,000
                                                                       ---------
                                                                      #500,000
                                                                       =========




The deferred consideration of #500,000 payable by the Purchaser is covered by
first demand bank guarantees in favour of the Vendor.


Completion of the agreement, which is expected to be by not later than 1st
September 2006, is conditional, inter alia, upon consultation with the employees
under the Transfer of Undertakings (Protection of Employment) Regulations 2006
and the Lessor of the premises currently occupied by Chillington Manufacturing
consenting to the assignment of the lease to the Purchaser.


The gross assets of Chillington Manufacturing at 31st December 2005 amounted to
#1,080,000 and the net loss attributable to it for the year ended on that date
amounted to #1,031,000 (including an impairment provision of #670,000).


The proceeds of the transaction will initially be used by PGI to reduce its net
borrowings. The disposal completes the Group's withdrawal from all its non core
businesses. It is now focused on its Food group operations in Southern Africa
and its property investment management and development in Russia through the
Jensen Group.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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