General Cable Corporation has announced the completion of the sale of its Thailand operations to MM Logistics Co. for cash consideration of approximately US$88 million.
The deal marks part of a strategy aimed at improving its financial position and tightening the company’s focus on core markets.
The closing of the sale of the Thailand operations is the first of a two-step closing process, with the second closing to complete the sale of the company’s remaining Asia Pacific operations.
With the closing of the second phase of sales - due to occur at the end of September - General Cable Corporation said it expects to generate approximately US$205 million of cash proceeds in total from the sale of its Thailand, China, New Zealand and Australian operations.
“We are executing our divestiture plan and focusing on operational excellence in our core markets in North America, Europe and Latin America,” said Mike McDonnell, President and Chief Executive Officer.
The company said proceeds will be used to reduce outstanding borrowings and pay related fees and expenses.
“Our financial position continues to improve as we apply sale proceeds to reduce outstanding borrowings and improve our core operations. Upon completion of the sale of Asia Pacific including Thailand, China, New Zealand and Australia and the prior sales of our interests in the Philippines, Keystone Wire and Cable (China) and Dominion Wire and Cable (Fiji), we expect to generate total cash proceeds of approximately $293 million which is consistent with our previously communicated expectations,” McDonnell said.