§ Mr. SteenTo ask the President of the Board of Trade if he will make a statement on the sale of the British Technology Group.
§ Mr. LeighIt was announced last year,Official Report, 11 March 1992, columns 559–60, that the British Technology Group had been sold to a management-led consortium. I can now inform the House of the final outcome of discussions to settle the initial proceeds of the sale.
In accordance with clause 6 of the share purchase agreement, completion accounts were prepared by the purchasers for the purpose of determining the consideration to be paid for the purchase of the shares in BTG. It has not been possible for the Government and the purchasers to agree the completion accounts, but it has nevertheless been agreed that no payment should be made either way under the provisions of clause 6 of the agreement. The initial proceeds therefore remain at £27.75 million.
A copy of the letter expressing the agreement of the parties, and the completion accounts as originally submitted by the purchasers, has been placed in the Library of the House. Members will wish to note that the completion accounts were prepared for the sole purpose of determining the consideration to be paid for the purchase of the shares in BTG; they should not be interpreted as describing the trading position of BTG during 1991–92. A report and accounts were published by the company in August 1992, a copy of which has also been placed in the Library of the House.
The House may also wish to be reminded that additional proceeds may arise if over the five years to 31 March 1997 the business performs at a level in excess of the net revenues forecast by BTG management in its 1991 business plan. Further proceeds may also arise from clawback on the proceeds of sale of real property.