SURREY-based holding company TT Group has issued a vague statement saying its intentions towards Prestwick Holdings remain unchanged, even though it has increased its stake in the operation from around 9% to 22%.
TT, which owns a variety of businesses in the electronic components, industrial products and packaging sectors, paid nearly #2m for an additional 5.4 million shares in the Ayr-based company. It now holds more than 9.3 million shares in the printed circuit board (PCB) manufacturing operation.
The news followed an announcement by Prestwick that it was shedding staff and was unlikely to make a profit in the current financial year. Some 40 people from a pool of 70 temporary workers have been laid off during the past couple of months, while an additional 40 to 50 staff will begin receiving their notices shortly.
Chief executive Pat Moore said yesterday morning that he had not been informed of TT's intentions. Moore headed one of the holding company's electronics subsidiaries before joining the Ayr-based manufacturer two-and-a-half years ago.
''We have not heard anything from them as yet,'' he said. ''But it was a big slug that they took. They now own 22% of us.''
When TT purchased its original stake in Prestwick in December, executive chairman John Newman described it as a ''strategic holding.'' That stance was re-confirmed in a stock market announcement released yesterday, although the former Hanson executive did not indicate whether he regarded a ''strategic'' holding as a prelude to a takeover.
''TT Group has an involvement in printed circuit boards, and we know Prestwick's chief executive, Pat Moore, well as he once worked for TT Group,'' Newman said. ''Our view of this investment has not changed.''
Moore refused to speculate on how the board might respond to a bid from TT, saying only that the company would do what was in the best interests of shareholders. Talks between Prestwick and another potential buyer, identified only as an overseas company, broke down in March.
Meanwhile, Signum Circuits of Selkirk is preparing to cut back from 10 shifts per week to eight as it struggles with the world-wide slump in the electronics market.
Although none of the company's 160 staff are being made redundant, about 75 will be affected by the reduction in working hours. Managing director Guido Crolla said he expected the harsh market conditions to continue for at least another six months.
''It's a combination of factors that have affected us,'' he added. ''There is the Asian crisis, but also our direct sales are down as a result of the strength of sterling.
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