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Teleca divests auSystems for SEK 822M, discontinues investment in Obigo
April 2, 2007
STOCKHOLM -- Teleca (STO:TELCB) divests auSystems to two buyers:
Cybercom acquires the Swedish, Danish and Polish operations for SEK 730 million in cash, and
Devoteam acquires the operations in France, Italy, Norway and UK for a total consideration of SEK 92 million in cash
Teleca halts investments into renewal of Obigo product and write down the assets connected to Obigo. More than 200 employees in Sweden will be offered employment by Sony Ericsson Mobile Communications.
Telecas board of directors plan to distribute SEK 570 - 630 million, corresponding to SEK 9 - 10 per share. Proposal to shareholders will be presented during April 2007.
In the future Teleca will focus on mobile consulting with its entire business in the mobile device industry. Teleca Mobile
Consulting has an excellent customer base, more than 2000 employees and a proven track record of profitability.
Today Teleca announce two major transactions. The divestment of auSystems and the reorganization of the Obigo products business.
In total: the divestment of auSystems and the changes in Obigo will result in an addition of SEK 784 million in cash into Teleca. Due to a write-down of goodwill and other items the impact on the Earnings for the period will be minus SEK 198 million in 2007. Losses in Obigo will be eliminated. In the future Teleca's business will be Mobile Consulting, which historically has exhibited a strong profitability.
Rene Svendsen-Tune, President & CEO of Teleca says: "With the divestment of auSystems and the removal of the financial burden from our product business, we have reached a very significant milestone. The new Teleca will be a focused global services company with an excellent customer base, good profitability and a strong balance sheet. We can now devote all our energy to strengthen the top-line and profitability of the new streamlined company. The mobile device industry is rapidly consolidating, and it will be crucial for us to continue the drive for scale and improved cost base".
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