Dublin electronics group buys Molynx

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The Independent Online
SILVERMINES, a specialist electronics manufacturer headquartered in Dublin but with factories in England, has made an Ir pounds 5.2m (pounds 5.1m) agreed offer for Molynx, the security and building controls group.

Silvermines intends to raise Ir pounds 7.4m by way of a share placing to reduce debt and provide additional capital for the enlarged group. The shares will be listed in London as well as Dublin.

Molynx's closed-circuit television and security division made profits estimated at pounds 1.4m on turnover of pounds 12m in 1993, but its building energy management systems division saw losses soar from pounds 100,000 in 1992 to an estimated pounds 900,000.

Silvermines has four core electronics businesses following its disposal of several subsidiaries and investments since 1992. It intends to expand further by acquisition.

Clem Jansen, Silvermines' managing director, said: 'Our group has the proven ability to run this kind of business profitably.' It made estimated profits of at least Ir pounds 1.4m in 1993, after two years in the red.

Eric Walters, Molynx's chairman, said: 'The industrial fit of our business with Silvermines' is very attractive.' The board is recommending the offer of 55 Silvermines shares for every 100 Molynx shares. Molynx shares closed 2p up at 25p.

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