Otavi Minen AG is part of Johnson Matthey's Ceramic Materials Division which was formed after the recent acquisition of 100% of Cookson Matthey Ceramics plc, Johnson Matthey's former joint venture with Cookson Group. The business activities of Otavi Minen include the mining and processing of Perlite, an insulating material used in construction, and a minerals trading and processing operation in Germany.

The net assets of the businesses disposed of amounted to DM 53.3 million at 31st December 1997 and the net gain over book value is expected to be approximately DM 8 million (£2.5 million). The business earned profits before tax of DM 6.7 million in the year ended 31st December 1997. Profits after tax were DM 3.6 million. The net proceeds of the sale of £17 million will be used to reduce group borrowings.

Chris Clark, Johnson Matthey's Chief Operating Officer, commented:

"The sale of Otavi represents a significant step in the disposal of peripheral businesses of our Ceramics Materials Division, a strategy that we first announced in November 1997. This is aimed a focusing the Division on its core ceramic markets whilst also improving its overall return on assets.