CORPORATE NEWS:
Knill to become majority shareholder in Nextrom
The Knill Gruppe, Austria – owner of Rosendahl – is set to acquire the majority shareholding of Nextrom, Switzerland, from Nokia in order to strengthen its market position. The two companies will be organised as sister companies.
Knill Gruppe’s plan is to consolidate all
its fibre optics-related cable and wire business to Nextrom. The transaction will strengthen Nextrom’s market position in the field of fibre optics. Knill Gruppe’s press release states: “The fibre optic machinery market has improved recently after a two-year slow period. Fibre usage is estimated to grow mainly in the
US markets, where fibre-to-the-home projects have rapidly increased the demand for optical fibre. The industry
still has an issue in low market prices
and over-capacity, which is reducing investment activity. The global trend, however, is positive.”
The agreement means the Knill Gruppe will purchase all the registered shares (1,875,000) and the bearer shares (1,361,702) held by Nokia in Nextrom, as well as the senior loan from Nokia to Nextrom, for a total price of CHF 7.95 million.
After the transaction, Nokia will have no Nextrom shares left, nor any other claims towards Nextrom. As part of the transaction, most of the senior loan, worth CHF 20 million, will be repaid through the sale of some Nextrom assets. The mechanism would also release Nextrom from its long-term lease agreement for the building in Vantaa, Finland, as well as the contingent liability related to the lease agreement. Also, the subordinated loan from Nokia to Nextrom will be forgiven.
The estimated equity in the Nextrom balance sheet will be approximately CHF 8 million after the contract’s closing.
The closing procedure, including the approval of the Board of Directors of Nextrom Holding SA for the sale of Nextrom’s assets, is expected to take place during the first quarter of 2005.
After the transaction, Nextrom Holding SA will remain a public company, trading on the Swiss Stock Exchange. It will keep
its present business activity and remain a global partner.
Any organisational changes within Nextrom and restructuring plans will
be finalised after the closing of the transaction.
Company: |
Knill Holding GmbH |
Country: |
Austria |
Fax: |
+43 3172 2505 19 |
Email: |
|
Website: |
www.knillgruppe.com |