Plexus Holdings PLC, oil and gas engineering services business, announced today that its wholly owned subsidiary Afrotel Corporation Ltd (Afrotel) has divested its sole asset, consisting of a 25% shareholding interest in KSW Engineering Limited (KSW), a private UK oil and gas equipment manufacturing and engineering company.
The consideration for the sale to KSW is £1.5 million ($2.35 million) in cash which will be deployed as part of Plexus’ global expansion strategy of identifying new international manufacturing partners for its suite of POS-GRIP wellhead products for oil and gas exploration, production and in due course subsea applications, the company said.
Plexus acquired its interest in Afrotel in July 2013 for £725,000. According to the company, the investment in KSW generated £215,000 of profit share for Plexus in the eleven months to June 30, 2014 and was valued at £941,000 as at that date.
Plexus’ CEO Ben Van Bilderbeek said, “We are working hard to move our products into new operating regions such as Asia, Australia, China, Russia, and West Africa. The need to align Plexus with alternative lower cost manufacturing capacity for POS-GRIP applications to be sold to our customers, is the primary driver behind the divestment of our 25% shareholding interest in the private UK engineering company.”