GN Store Nord Sells NetTest

Having failed to spin off NetTest, GN Store Nord sells it to Axcel IndustriInvestor for one (1) Danish Kroner (about 14 cents)

December 31, 2002

1 Min Read

ANDOVER, Mass. -- In 2001, GN Store Nord announced the intention to spin off NetTest. However, due to market conditions it was not possible to carry out an independent listing of NetTest and a subsequent division of GN Store Nord. Consequently, GN Store Nord began an actual divestment process in the fall of 2002, which has now resulted in the sale of NetTest. Effective December 31, 2002, GN Store Nord has sold NetTest to a consortium led by Axcel IndustriInvestor at a price of DKK 1 on a debt-free basis. As part of the sale, GN Store Nord has capitalized the company with DKK 155 million. In addition, GN anticipates having to incur net costs of up to DKK 100 million in cover of restructuring costs, representations, etc. GN has also agreed to make the payments of unutilized long-term leases for an amount of up to DKK 50 million. This commitment will be reduced to the extent the leases in question are occupied. The transaction includes an earn-out agreement that may give GN a share of the return on the new owners' investment. The optical OPL division in Beaverton, USA, has been sold in a management buy-out. Relative to the guidance issued on November 20, 2002, the sale will reduce GN Store Nord's earnings before tax by approximately DKK 500 million to just over DKK (5.3) billion. The sale reduces GN Store Nord's shareholders' equity by approximately DKK 500 million at December 31, 2002. GN Nettest

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