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But cash return unlikely as TT Electronics eyes new growth investment
Thursday 27 Jul 2017 Author: Steven Frazer

Electronic components manufacturer TT Electronics (TTG) has netted significantly more for its Transportation Sensing and Control division than anyone expected.

The division’s sale, for £118.8m in cash, works out at 73p per share. That’s far more than Peel Hunt analysts valued the unit; their model implied £65m.

But investors should not expect a cash return, TT Electronics wants to pay-off debt and invest in faster growth opportunities than the commoditised sensing and controls business was likely to deliver, so expect more acquisitions soon.

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