Equant signs agreement to be acquired by France Telecom

February 10, 2005

1 Min Read

AMSTERDAM -- Equant (Euronext Paris: EQU) (NYSE: ENT) today announced that it has signed a definitive agreement (the “Agreement”) with France Telecom providing for the purchase by France Telecom, and the sale by Equant, of substantially all of its assets in exchange for the assumption of all of its liabilities (other than certain retained liabilities relating to the Agreement) and a cash payment equal to approximately €1.26 billion.

Charles Dehelly, President and Chief Executive Officer of Equant, declared: “This transaction demonstrates the confidence France Telecom has in Equant’s ability to turn the company around by delivering on its top priorities: stopping the cash drain, growing profitable sales and developing partnerships. This evolution will make it easier to leverage the significant capabilities of France Telecom, in particular in the area of research and development. It will reinforce Equant’s leadership and capability to provide multinational companies with the most advanced global telecommunications solutions and help its customers to improve their efficiency.”

As promptly as practicable following the closing of the transactions contemplated by the Agreement, the proceeds of the asset sale will be distributed to Equant’s ordinary and preferred shareholders and Equant N.V. will subsequently be liquidated. Equant's shares will then be delisted from Euronext Paris and the New York Stock Exchange. The sale proceeds for Equant assets yield an implicit price per share of Equant ordinary or preferred stocks outstanding equal to €4.30.


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