Completion of Disposal of Megolon

On 31 July 2006 Scapa announced that it had entered into a conditional agreement to sell the business and assets of Megolon to AlphaGary Limited, a subsidiary of Rockwood Holdings Inc, for a total consideration of £16.75 million in cash (before transaction costs and taxation).

In view of the size of the proposed disposal relative to the Group, the sale was conditional upon the approval of shareholders, which was received at the Extraordinary General Meeting of the Group held on 23 August 2006. The disposal was also conditional upon receipt of various merger control clearances.

All conditions have now been satisfied and consequently completion of the disposal of Megolon took place on 13 October 2006.

Commenting on the disposal, Chief Executive Calvin O’Connor said that "the sale of the Megolon business substantially improves the financial strength of the Group and represents a major step in the development plan for Scapa."

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