UK Small Caps

LONDON (ShareCast) - Uniq (LSE: UNIQ.L - news) said poultry and delicatessen group LDC (Paris: FR0000053829 - news) has offered to buy Marie SAS, its chilled and frozen foods unit in France, for up to €73m.

LDC has offered €60m, payable in cash on completion subject to €6m being held in escrow for 18 months.

The French group would also assume responsibility for the net debt in Marie that has an average level of €13m.

Uniq said the net proceeds, after costs, would be applied to pay down £25m of bank borrowings and cancel the related facilities, with a further £10m available to support the retained businesses. The balance would be set aside for future investment opportunities and/or reducing the net UK pension deficit, it added.

The deal requires authority clearance in France and prior consultation with the Works Council of Marie in accordance with French law. "The proposed disposal of Marie to LDC would facilitate consolidation of the French market and we are delighted with this potential outcome of the disposal process we announced in March," said Uniq's chief executive Geoff Eaton.

"The resultant reduction of our debt would strengthen our balance sheet and would be a significant step towards focusing Uniq on the UK and enabling us to concentrate our resources on building a strong platform for the future," he added.