Quadrant Group Plc - Re Strategic Alliance
11 September 1999 - 3:29AM
UK Regulatory
RNS No 3139v
QUADRANT GROUP PLC
10 September 1999
Quadrant Group plc
Quadrant Systems Strategic Alliance
Quadrant Group plc ("the Company") today announced that its
flight simulation and training subsidiary Quadrant Systems
Limited ("Quadrant Systems") has entered into a strategic
alliance with Flight Safety Boeing Training International LLC
("FSB"). The alliance encompasses co-operation between the
two companies in a number of areas:
- the purchase by a subsidiary of FSB of Quadrant's three full
flight simulators for #4.46 million in cash
- a contract whereby Quadrant Systems will maintain and
technically support the three flight simulators, as well as a
fourth FSB simulator, for a minimum period up to July 2004.
- the award by FSB to Quadrant Systems of several contracts for
the upgrade and relocation of certain of FSB's simulators
around the world, with the possibility of further such
contracts in the future.
- potential future contracts whereby Quadrant Systems would
maintain FSB's simulators in its new training centres in
Europe.
- co-operation on certain military flight training programmes.
FSB is the world's leading provider of flight training for
large commercial aircraft, and is jointly owned by The Boeing
Company and FlightSafety International Inc (a subsidiary of
Berkshire Hathaway Inc). It has recently established a base
in the UK from which to launch its planned growth in Europe.
Because of the size of the transaction, the sale of the three
flight simulators and certain related assets is subject to
approval by the Company's shareholders at an Extraordinary
General Meeting. A Circular setting out details will be
posted to shareholders as soon as practicable. Irrevocable
undertakings to vote in favour of the proposed disposal have
been received from shareholders representing 52% of the
Company's outstanding ordinary shares.
The sale of the simulators will realise a net gain on disposal
of approximately #1.3 million.
Following completion of the FSB agreements, Quadrant Systems
will continue to focus on its growing business as one of the
world's leading independent companies providing flight
simulator upgrades, relocations, technology additions and
maintenance.
David Coghlan, Chief Executive of Quadrant Group, commented:
"The agreements with FSB represent a significant step forward
for Quadrant Systems, confirming its position as a leader in
the highly specialist flight simulation services market. FSB
is one of the largest customers for such services and we look
forward to a growing long term relationship".
The Company's preliminary announcement of results for the year
ended 31 May 1999 has been released today as a separate
announcement.
Enquiries:
David Coghlan and Nigel Poultney 01527 850080
Quadrant Group PLC
END
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