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SNECMA & SAGEM MERGE
01 January 2005 - Sagem Communication
| The Sagem Supervisory Board, meeting on October 28, 2004 under the chairmanship of Mario Colaiacovo, and the Snecma Board of Directors, meeting the same day under the chairmanship of Jean-Paul Béchat, examined a proposed merger of the two groups. Sagem's Supervisory Board has approved the project, while Snecma's Board of Directors will issue an opinion at a meeting to be held early next week. |
As stipulated by law, this proposed merger will first be submitted for consultation by employee representative bodies. The merger would take place in two linked stages. In the first stage, Sagem would submit a public offer for the totality of Snecma shares. This offer would mainly include an exchange offer of 13 Snecma shares for three Sagem shares, along with an ancillary public share offer at a price of 20 euros per Snecma share, this ancillary offering having a total ceiling of 1.25 billion euros. In addition, an interim dividend of 0.5 euro per share shall be paid by Sagem on the settlement-delivery day, both for the existing shares and for the shares tendered within the scope of the exchange offer. This offer will be subject to approval by the French stock exchange authorities and the required regulatory authorizations. In the second stage, the two groups would finalize their merger immediately upon approval of both companies' financial statements for 2004. The expanded group would be a major player in the civil aviation, defense, telecommunications and electronics sectors, with a robust, well-balanced business portfolio. The merger, which would have no negative impact on the employment situation, would enable the two groups to energize their development through complementary technology skills and a denser international sales and marketing network, backed by similar corporate cultures and values. For example, Sagem's technical expertise, especially in electronics, would immediately find new outlets through applications on Snecma's aircraft engines and equipment. In the same way, Snecma would provide Sagem with access to an extended international commercial network. The merger is designed to create a major industrial and technology group that is competitive on the global stage and enjoys strong positions in growth sectors. The balance and diversity of the group's businesses, thanks to their complementary operating cycles, would give the new entity greater financial stability, significantly reduced exposure to the U.S. dollar, and expanded capability for growth.
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About: Sagem Communication
Sagem Communication is organized in two Business Groups: Mobile Communication and Broadband Communication.Mobile Communication Sagem brand mobile phones enjoys a strong presence in world markets – Europe, Middle East, Africa, Asia and Latin America – thanks to continuous technological innovations, including build-in cameras, colour screens, multimedia messaging, WAP, GPRS, modules and modems, etc. The Mobile Communication Business Group operates a Research & Development center in Cergy, northwest of Paris, and a production plant at Fougères, in the Brittany region of France. Industrial and commercial partnerships with other telecom players have opened access to new international markets, including China and Brazil. China: a joint venture with Bird, the leading domestic manufacturer of mobile phones, called "Ningbo Bird Sagem Electronics Corporation Ltd". Brazil: a joint subsidiary with Gradiente, to handle the production and marketing of Sagem mobile phones. Broadband Communication The Broadband Communication Business Group designs, develops and produces a complete line of products for the high-growth broadband, video and printing markets. A proven capability for innovation led to technological breakthroughs that give Sagem products high-profile positions in these highly competitive markets: the first DLP flat-screen TVs in Europe, the first embedded image correction in terminals, DECT wireless phones with mobile phone functions (SMS, hi-fi ring tones, directory, etc.), TVs and set-top boxes with build-in card readers, etc. The Broadband Communication Business Group also deploys a Europe-wide network of subsidiaries, called National Sales Organization (NSO), that distributes Sagem brand products to all major European retailers. Sagem has signed a number of agreements with OEMs, meaning that Sagem products are used by the world’s leading brands and most European operators. |
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