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UPDATE 1-Teleflex to sell joint-venture stake to GE for $300 mln

Mon Mar 2, 2009 7:52am EST

Stocks

   

* To sell Airfoil Technologies stake for $300 mln

* Says stake sale to repay debt

* Sees pretax gain of more than $250 mln

* Sale to reduce debt-to-capital ratio below 50 pct

March 2 (Reuters) - Diversified manufacturer Teleflex Inc (TFX.N) said it agreed to sell its 51 percent stake in Airfoil Technologies International (ATI) joint venture to partner General Electric Co (GE.N) for $300 million to repay debt.

Teleflex expects the deal to result in a pretax gain of more than $250 million and reduce its debt-to-total capital ratio below 50 percent after using the net proceeds for debt repayment.

The company has also agreed to transfer its ownership interest in the remaining ATI business to GE by the end of 2009.

Airfoil Technologies International - Singapore Pte Ltd services all GE commercial aviation, marine and industrial engines, as well as United Technologies Corp (UTX.N) unit Pratt & Whitney and Honeywell International (HON.N) components. (Reporting by Dhanya Ann Thoppil in Bangalore; Editing by Vinu Pilakkott)



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