FIRST CITY <FCY> SELLS YALE, NUTONE UNITS
First City Industries Inc
said it has reached a definitive agreement to sell its Nuton
and Yale security subsidiaries to Valor PLC for 400 mln dlrs
and warrants to purchase two mln Valor ordinary shares.
    In addition, the company said it will recieve a special
dividend of 60 mln dlrs from Nutone and Yale and it has agreed
to buy 35 mln dlrs of Valor convertible preference shares.
    First City said it is seeking to increase shareholder
values by improving and realizing the values inherent in its
operating subsidiaries.
    The company said the transaction is subject to approval by
shareholders of Valor and is expected to be completed within 40
days.
    It said Valor has arranged financing through an issue of
ordinary and convertible preference shares underwritten by
Hoare Govette Ltd and Barclays de Zoete Wedd Ltd.
    Nutone makes built-in electric products for the housing
market and Yale makes door locks and electronic security
products.
    Valor makes home products.
 Reuter
