Goninans Sold

[steam4me@enternet.com.au (Yuri J Sos/Melbourne)]

The Age 11 August 1999, Business Section Page 6

"Howard Smith finally sells off train maker"

HS has sold Goninans for a better than expected $130 million to the
aggressive Perth-based engineer United Group.

The deal will see United welcome in a new major shareholder in General
Electric, owner of Goninan's rail technology.  GE's private equity
arm, GE Equity, is helping fund the deal by subscribing for a $20
million placement, part of a $45 million equity-raising for the deal.
Under this arrangement GE will emerge with 14% of United's capital.

Goninan has been HS's worst performing arm.... <SNIP>

United and GE have agreed to a three year licensing deal which will
allow Goninan to keep exclusively using GE's technology and know how.
Goninan previously had no exclusive arrangement with GE.

GE Equity will also take five million options at a strike price of
$2.68, exercisable only if United and GE enter a second three-year
licensing deal.

<SNIP>