Information  X 
Enter a valid email address

GN Great NordicHldgs (03GY)

  Print      Mail a friend

Friday 04 August, 2000

GN Great NordicHldgs

Disposal, etc.

GN Great Nordic Holdings Ld
4 August 2000


GN COMTEXT AND GN GREAT NORTHERN TELEGRAPH COMPANY TO BE RESTRUCTURED

GN COMTEXT HAS SIGNED AN AGREEMENT WITH EFFECT FROM JULY 31 TO SELL
ITS MESSAGING SERVICES DIVISION TO SWIFT TELECOMMUNICATIONS INC. AT A
PRICE OF USD 2.8 MILLION, WITH THE POTENTIAL FOR AN ADDITIONAL PAYMENT 
OF UP TO USD 0.6 MILLION DEPENDING ON THE MESSAGING
SERVICES DIVISION'S REVENUES FOR THE REMAINDER OF THE YEAR.

FOR GN GREAT NORDIC, THE SALE IS EXPECTED TO RESULT IN A MINOR LOSS
RELATIVE TO BOOK VALUE IN THE CURRENT FISCAL YEAR.

THE SALE IS IN LINE WITH GN COMTEXT'S STRATEGY OF FOCUSING
EXCLUSIVELY ON BEING A PROVIDER OF COMMUNICATION SOLUTIONS TO THE
MARITIME SECTOR. LAST YEAR, GN COMTEXT HAD MORE THAN 3,500 MARITIME
CUSTOMERS AND THIS SECTOR GENERATED 65 PER CENT GN COMTEXT'S REVENUES.

THE SALE TO SWIFT COMPRISES GN COMTEXT'S NETWORK AND PLATFORMS, THE
TELEX, TEXT-TO-FAX AND E-MAIL ACTIVITIES AS WELL AS ALL NON-MARITIME
BUSINESS. OVERALL, THE DEAL INVOLVES ACTIVITIES AND COMPANIES
WITH A TOTAL OF 75 EMPLOYEES IN SEVEN COUNTRIES.

THE DECISION TO DIVEST THIS BUSINESS WAS MOTIVATED BY THE DESIRE TO
FOCUS ON THE MARITIME SECTOR. IN ADDITION, GN COMTEXT HAS HAD EXCESS
NETWORK CAPA-CITY COMPARED TO ACTUAL TRAFFIC FLOWS. THE SALE 
WILL NOT AFFECT GN COMTEXT'S CAPACITY OR ITS QUALITY OF SERVICE TO
CUSTOMERS IN THE MARITIME SECTOR. THROUGH A CO'OPERATION AGREEMENT
WITH SWIFT, GN COMTEXT WILL RETAIN ACCESS TO THE NETWORK TO CONTIN
UE ITS MESSAGING SERVICES.

GN COMTEXT IS KNOWN THROUGHOUT THE MARITIME SECTOR AS A PROVIDER OF
RELIABLE, SAFE, AND CUSTOMIZED SOLUTIONS. THE COMPANY INTENDS TO
DEVELOP FURTHER ITS MARITIME SERVICES AND HAS RECENTLY SIGNED A JO
INT VENTURE WITH STRATOS, ONE OF THE FASTEST GROWING MARITIME
SATELLITE OPERATORS, WITH THE PURPOSE OF GLOBALLY MARKETING A PRODUCT

PORTFOLIO. FURTHERMORE, GN COMTEXT CONTINUES TO INVEST IN CREATING
A PLATFORM FOR MARITIME E-COMMERCE, AND A PILOT PROJECT SHOULD BE
RELEASED WITHIN THE NEXT FEW MONTHS.

FOLLOWING THE SALE, GN COMTEXT WILL HAVE 90 EMPLOYEES, AS COMPARED TO
244 FULL-TIME EMPLOYEES LAST YEAR, AND A PROFITABLE BUSINESS AREA
WITH ANNUAL REVENUES OF DKK 250 MILLION HAS BEEN ESTABLISHED.

MERGING GN COMTEXT AND GN GREAT NORTHERN TELEGRAPH COMPANY
CONCURRENT WITH THE SALE, GN COMTEXT AND GN GREAT NORTHERN TELEGRAPH
COMPANY WILL BECOME A SINGLE BUSINESS UNIT UNDER ONE MANAGEMENT. THE
OBJECTIVE IS TO BRING TOGETHER ALL ACTIVITIES IN GN GREAT NORDIC NOT 
INCLUDING THE THREE CORE BUSINESSES, GN NETTEST, GN RESOUND AND GN NETCOM.

KLAUS IRNER, PRESIDENT AND CEO OF GN COMTEXT, HAS BEEN APPOINTED
PRESIDENT AND GENERAL MANAGER OF THE TELEGRAPH COMPANY. FRITS LARSEN,
PRESIDENT AND GENERAL MANAGER OF THE TELEGRAPH COMPANY, HAD PREVIOUSLY INDICATED
THAT HE WOULD LIKE TO RETIRE AS FROM NEXT YEAR, AND THIS 
APPOINTMENT PROVIDES A SOLUTION. HOWEVER, FRITS LARSEN WILL
CONTINUE TO MAKE HIS SERVICES AVAILABLE TO THE COMPANY AND ACT AS ITS
REPRESENTATIVE IN INTERNATIONAL BUSINESS RELATIONS. FRITS LARSEN
HAS WORKED FOR THE TELEGRAPH COMPANY FOR MORE THAN 40 YEARS AND SINCE
1986 HAS HAD THE OVERALL BUSINESS RESPONSIBILITY FOR THE TELEGRAPH COMPANY,
WHICH THROUGHOUT THE 1990S CONTRIBUTED SIGNIFICANTLY TO THE GN GREAT NORDIC
RESULTS.

GN GREAT NORDIC IS AN INTERNATIONALLY EXPANDING GROUP OF COMPANIES IN
THE TECHNOLOGY SECTOR. THE GN GREAT NORDIC GROUP NOW HAS THREE CORE
BUSINESSES - GN NETTEST, GN RESOUND AND GN NETCOM - ALL OF WHICH ARE 
LEADERS IN HIGH-GROWTH MARKETS. LISTED ON BOTH THE COPENHAGEN
AND THE LONDON STOCK EXCHANGES, GN GREAT NORDIC WISHES TO CREATE A
HIGH RETURN ON SHAREHOLDER INVESTMENT THROUGH THE ACTIVE OWNER
SHIP OF MARKET-LEADING, PROFITABLE TECHNOLOGY COMPANIES. MORE
INFORMATION ON THE GN GREAT NORDIC GROUP IS AVAILABLE AT WWW.GN.COM
AND WAP.GN.COM.


FOR FURTHER INFORMATION, PLEASE CONTACT:


JOERGEN LINDEGAARD
PRESIDENT AND CEO

GN GREAT NORDIC
TELEPHONE: (+45) 72 111 888

JENS OLE LEGART
SENIOR VICE PRESIDENT

GN GREAT NORDIC
TELEPHONE: (+45) 72 111 880 OR
CELL PHONE: +45 40 57 14 192


                                                                                
                                                                                
                                        

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