Siemens AG — M&A Activity 1998

Jun 24, 1998

News Details

Ad-hoc | 24 June 1998 08:04

Ad hoc-Service: SIEMENS AG Englisch

—————————————————————— Ad hoc-Service: SIEMENS AG Englisch Mitteilung gemäß Paragraph 15 WpHG übermittelt von der DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Siemens sells its stake in GPT to GEC and acquires GEC’s stake in Siemens GEC Communication Systems – Siemens receives £610 million as a balancing payment Siemens AG, Berlin and Munich, and The General Electric Company plc. (GEC), London, have reached agreement on the future of their joint ventures in the British telecommunications market. Siemens will sell to GEC its 40% stake in GPT, its joint venture with GEC in public communications systems. At the same time, Siemens will acquire the remaining 50% (less one share) of the equity of Siemens GEC Communication Systems Ltd., its joint venture with GEC in private communications Systems. In addition, GEC will make a balancing payment of £610 million to Siemens. In a step to focus its telecommunications activities for public network operators in the UK, Siemens has formed two new companies, Siemens Telecom Networks and Siemens Newbridge Networks. With this move, Siemens is sharpening the focus of its telecommunications activities in order to achieve clear market positions. Siemens’ long-term interest lies in high-growth telecom fields such as mobile telephony and broadband data transmission technology – and this on a worldwide basis. Siemens will intensify its involvement in these fields, and push developments in global telecom markets, like the increasing convergence of voice and data transmission technology and the booming mobile telephony sector. As previously announced, Siemens is currently preparing a comprehensive restructuring of its information and communications business segments, due to take effect on October 1, 1998. The formation of the new companies Siemens Telecom Networks and Siemens Newbridge Networks will enable Siemens to expand its business with UK public network operators and offer its complete spectrum of telecommunications products in the UK. Munich, June 24,1998 Ende der Mitteilung