Memscap sell French plant to Soitec

The Company has concluded with Soitec an agreement of sale of its Bernin manufacturing site for a net amount of 13 million euros, which includes the transfer of the existing site lease-back agreement. This sale would totally annul Memscap financial liabilities (with a net cash over 10 million euros) and would enable the Company to increase its cash by more than 7 million euros. Except for an exceptional consolidated accounting loss of 4.4 million euros, that is the difference between the net sale amount and the net book value of the site, and which will be recorded in the books for the 2nd quarter results, the sale impact on the Group annual net result would be an improvement of over 1 million euros per year. The completion of the sale with signature of the official sale act should take place shortly right after the realization of the suspensive conditions. “The sale of our Bernin manufacturing site, where production had been stopped in 2003, means the end of Memscap financial debts, and represents a major turning point in our Group development and growth”, declares Jean Michel Karam, Chief Executive Officer of Memscap. “We are also satisfied that this sale be made to Soitec, our neighbour, as this contributes to the industrial development of the Grenoble region”. “We are delighted to acquire the manufacturing site of Memscap within the frame of our growth projects, because this site is of an exceptional quality, and enables us to be immediately operational”, comments André-Jacques Auberton-Hervé, Chief Executive Officer of Soitec.