Redstone PLC (RED.LN), a provider of integrated IT solutions, said Friday it will use the GBP17 million in proceeds from the sale of its telecoms and mobile divisions to reduce its bank debt

MAIN FACTS:

-Unit sold to Daisy Telecoms Ltd, wholly owned subsidiary of Daisy Group PLC (DAY.LN).

-Bank debt after completion will be GBP14 million and net debt will be GBP17 million.

-Notwithstanding significant debt reduction, group still needs to resolve long term financing position and it continues to negotiate with Barclays Bank PLC (BCS).

-Exploring other ways to reduce indebtedness through further asset disposals, cost reductions or raising new funds.

-Transaction focuses Redstone on delivering ICT services to mid-market and enterprise clients, including Building Schools for the Future.

-Agreement subject to completion of TUPE consultation process and any working capital adjustment capped at GBP500,000.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com