The sale, for a nominal consideration, is to md for Germany Torben Sigenstrøm.

Following a review of the group's operations earlier in the year and the statement issued on 16 April, Christian Salvesen agreed the sale subject to conditions that include approval for the assignment of certain customer contracts and the German statutory requirement for employee endorsement of the transaction. It is expected that the sale will be completed by the end of next week or early the week after.

Group accounts for the year to 31 March, 2002 include turnover of £45.9 million in respect of the German business and an operating loss of £5.2mbefore exceptional items and goodwill amortisation of £17.3m. The cash outflow for the German business for that year was £7.5m, before capital investment and disposals. The business has net assets of approximately £19m and the group expects to take an exceptional charge on sale of approximately £9.6m in the year to 31 March, 2003. A further exceptional charge on sale of approximately £10.4m will be taken in the year to 31 March 2004.

Salvesen issued the following statement: 'Christian Salvesen remains committed to providing in-market network coverage of Germany as part of its European strategy. This will be delivered through arrangements with the business being sold and through strategic alliances and partnerships.' But analysts warn that it must not over-stretch itself and this sale of a loss-making business was expected in the marketplace.

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