The Trelleborg Group has reached a preliminary agreement regarding the sale of operations within its U.S metals-recovery company Metech International Inc. Viking, based in South Africa, through its U.S. subsidiary, Viking Platinum Investments LLC, is purchasing the company. The sale is expected to be complete by the second quarter of this year.
The acquisition, Viking's second in the resources sector, boosts the new entrant's platinum production to 150,000 ounces a year. David Mostert, a Viking director, said, "What we have is a very exciting business which produces metals from sources other than mines. We also have a sustainable source wituout making huge holes in the ground and hiring thousands of people to work in unsafe conditions. Because the precious metals are recycled the business is also friendly to the environment."
In the settlement, Metech International Inc. pledges to repay funds totaling $12.1 million to the customers affected through a restitution pool. Furthermore, following the court’s decision, the members of the former company management have been forced to pay a substantial sum to the restitution pool in addition to serving prison sentences of up to 2.5 years.
The investigation by the authorities related to a period extending from the late 1980s through 1995. All of the accused members of the company’s former management were sentenced during spring 2002.
Metech’s current management was appointed in 1996. Metech has assisted the authorities in their work since the investigation was started in 1995.
"The preliminary agreement reached with Viking regarding this divestment will enable us to release the capital tied up in Metech’s operations in an acceptable manner," said Fredrik Arp, Trelleborg’s CEO.
"It is also gratifying that we have now been able to reach a settlement with the federal authorities. Metech’s new management has changed the direction of the company’s operations to ensure that no similarly fraudulent activities can be repeated and they have also kept customers appraised of the situation during the period of the investigation."