Acquisition of Hartest PLC.

Acquisition of Hartest Holdings. (to be updated)

"On 30 July 2010, Elektron announced the terms of a mandatory cash offer for the entire issued and to be issued ordinary share capital of Hartest not already owned by Elektron (the "Offer") at an offer price of 90 pence in cash (the "Offer Price") for each Hartest Share (the "Announcement").

Since the Announcement, the board of Hartest has agreed to recommend the Offer at the Offer Price for the reasons set out in the letter from the Chairman of Hartest at Part 1 of the Offer Document. "

The offer for Hartest.

Elektron's offer values Hartest PLC at about £8.3 million. However its believed by the time the deal is finalised on the 12th September HTH could have over £1 million cash on deposit plus the sale of their freehold property the sale been recently concluded. The sale proceeds amounted to a little over £700,000. Taking away cash could reduce the actual cost for Hartest to approx £6.6 million. Hartest has no net debt and will be highly cash generative.

Hartest could well add £1 million to our pre tax profits in the current year and thereafter between £2 million to £3 million pre tax in the short to medium term. I expect Hartest will grow its turnover faster under Elektron's control, they will use each others sales network and distributors to ramp up sales.

Combined group forecast turnover and profits.

The acquisition of Hartest is significant for Elektron. The enlarged group will probably have turnover of circa £50 million for the current year and I estimate pre tax profits of about £5million. For next year I estimate turnover of circa £75 million and pre tax profits of about £8 million.

Such is the significance of the Hartest acquisition Elektron has been shortlisted as Aim transaction of the year see 5 below:-http://www.aim-awards.co.uk/2010/awar.php#6.

AIM Transaction of the Year"The winner of this new award will be a company that has been transformed by a single financial or commercial transaction during the period under review. This is necessarily a wide ranging award, given to recognise a significant achievement by a company in transforming itself, literally at a stroke, and thereby creating significant shareholder value. "

5. AIM Transaction of the Year Sponsored by Zeus Capita
1. Bellzone Mining pl
2. Elektron plc
3. Petra Diamonds Ltd
4. Norman Broadbent plc