Information  X 
Enter a valid email address

GN Great NordicHldgs (03GY)

  Print      Mail a friend

Tuesday 03 October, 2000

GN Great NordicHldgs

Business Restructure

GN Great Nordic Holdings Ld
3 October 2000


GN Great Nordic Accelerates Phasing Out of Non-Core Activities

GN Great Nordic has taken three steps which further increase its focus on its
core businesses in GN Nettest, GN Netcom, and GN ReSound. These steps have been
taken as part of GN Great Nordic's strategy to adjust, restructure or divest
companies and activities which are unable to achieve GN Great Nordic's targets.

GN Nettest Sale of York Sensors 
Effective September 29, GN Nettest sold British subsidiary York Sensors Ltd. to
Sensa (formerly Sensor Highway) - a leading provider of optical sending
technology for the energy sector - for USD 3 million (about DKK 26 million). 
The sales price may rise to USD 4.4 million (about DKK 38 million) if the
orders, York Sensors receives the rest of this year, fulfill certain
expectations.

York Sensors was part of PK Technology back when GN Nettest took over the latter
company on June 30, 1999, thus becoming the world leader in the supply of test
and monitoring equipment for optical communications. York Sensors manufactures
distributed temperature sensor systems based on fiberoptic cables and the same
OTDR technologies as used by GN Nettest in its Optical Division.  York Sensors,
however, targets completely different customer segments than GN Nettest. York
Sensors focuses on power plants, the processing industry, the oil and gas
industry, and suppliers of firefighting equipment, so the company brought no
sales synergies to GN Nettest.  Consequently, it was decided to sell York
Sensors for strategic reasons in order to focus both managerial and financial
resources on the Optical Division's successful activities.

The divestment does not change the expectations which GN Nettest and GN Great
Nordic have to the year 2000.

GN Great Northern Telegraph Company
GN Great Nordic has restructured its Telegraph Company, which involved cutting
about one-third of the company staff. The intention was to adjust the
organization to the activities which remain in the Telegraph Company; it does
not change the company' expectations to 2000.

Accelerated Sale of Real Estate
GN Ejendomme sold the Strandbo property in Copenhagen for DKK 38 million, which
meant a gain for GN Great Nordic, since the property's book value is
approximately DKK 4 million. GN Ejendomme now owns the building on Kongens
Nytorv square in Copenhagen which serves as GN Great Nordic headquarters, an
office building in London, and about 141 apartments in Copenhagen, Aarhus, and
Odense which are normally sold off as condominiums when tenants terminate their
leases. GN Great Nordic expects to accelerate the sale of its real estate
portfolio even further in the near future.

GN Great Nordic is an internationally expanding group of technology companies. 
The GN Great Nordic Group has three core businesses - GN Nettest, GN ReSound and
GN Netcom - all of which are among the leaders on their high-growth markets. GN
Great Nordic is listed on both the Copenhagen and London stock exchanges. The GN
Group wishes to create a high return on its shareholder investment through the
active ownership of market-leading, profitable technology companies.

Contact

Jorgen Lindegaard          Jens Ole Legart
President & CEO            Senior Vice President
                           Corporate Law & Communications


GN Great Nordic            GN Great Nordic
Telephone: (+45)           Telephone (+45) 7211-1880 or
7211-1888                  cellphone (+45) 4057-1419




a d v e r t i s e m e n t