Roxboro chief to get pounds 2m in flotation

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HARRY TEE, chief executive of the electronics company Roxboro, will receive pounds 2m in the forthcoming flotation of his company.

Roxboro will raise pounds 50m in the listing: pounds 35m will go to management and Schroder Ventures, which backed a management buyout in July 1990. The remaining pounds 15m will be used to pay off debt and provide pounds 5m for capital investment.

The company also forecast yesterday that it would make a trading profit of pounds 6.5m in the year to 31 December - compared with a pounds 3.1m profit last year.

Fifteen executives, including Mr Tee, will share pounds 10m in the flotation. Schroder Ventures will get the other pounds 25m. The venture capitalist has already earned an additional pounds 7m when the company redeemed preference shares.

Roxboro executives are only selling one-third of their holdings in the float. After the listing they will be left with about 20 per cent of the company. Schroder will also keep a holding totalling 20 per cent.

Roxboro makes a variety of specialised electronic components in the UK and the US. Its businesses make electro-magnetic devices for uses in measuring and lighting indicators for electronic systems.

The jump in trading profit has been helped by a 40 per cent reduction in the workforce from 1,200 to 700.