CANCOM SE — M&A Activity 2003

Oct 15, 2003

News Details

Ad-hoc | 15 October 2003 19:37

Cancom IT Systeme AG english

CANCOM divests its shareholding in eBizcuss.com S.A. Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CANCOM divests its shareholding in eBizcuss.com S.A. Jettingen-Scheppach, Germany, 15 October 2003 – With immediate effect CANCOM IT Systeme AG (ISIN DE0005419105) is divesting its 58.3 per cent stake in the Paris-based eBizcuss.com S.A. to a financial investor. The parties have agreed not to disclose the purchase price. In light of the fact that eBizcuss’ losses have depressed CANCOM’s consolidated operating result in the current financial year and the actual problematic general economic setting in France is unlikely to improve, the Group is pursuing the consistent strategy of divesting unprofitable business divisions. Although the shareholding in eBizcuss accounted for around 14 per cent of Group sales in the current financial year, it is also responsible for approximately 30 per cent of the Group’s operating loss to date. The divestment of the stake in eBizcuss.com will have a positive effect on the future operating result of the CANCOM Group. CANCOM will fully amortise the remaining goodwill of around EUR 3.3 million on 30 September. This immediate amortisation of goodwill has no impact on cash flow, and thus does not influence the result from business operations or the liquidity. Rather, CANCOM will derive substantial additional cash flow from the divestment of the shareholding. The sale of the eBizcuss stake is part of the Profit Improvement Programme that was introduced in the third quarter of 2003 to improve the company’s earnings in the short term. The programme has already delivered positive results and the Executive Board is anticipating the break even in the operating result in the fourth quarter of 2003. Requests: +49 (0)8225 996 1051 end of ad-hoc-announcement (c)DGAP 15.10.2003 ——————————————————————————– WKN: 541910 ; ISIN: DE0005419105; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 151937 Okt 03