Ing C Olivetti & Co SpA sold a 75% stake in its Syntax Processing systems integration and facilities management arm to Sema Group Plc for 32.1m British pounds, with Sema agreeing to take up the remaining 25% in November. Olivetti rather confusingly said the sale was part of a broader strategy, including the definition of […]
Ing C Olivetti & Co SpA sold a 75% stake in its Syntax Processing systems integration and facilities management arm to Sema Group Plc for 32.1m British pounds, with Sema agreeing to take up the remaining 25% in November. Olivetti rather confusingly said the sale was part of a broader strategy, including the definition of joint marketing initiatives aimed at the European market, to accelerate the development of Syntax Processing and to expand Olivetti’s provision of information services. Sema simultaneously announced a two-for-11 rights issue at 595 pence – against a price in the market ahead of the announcement of 691 pence – to raise 99m pounds to pay for the acquisition. Financiere Sema SA, which holds a 41% stake in Sema, has irrevocably undertaken to take up its full entitlement, and the balance will be underwritten by Deutsche Morgan Grenfell and Banque Paribas. Syntax, set up in 1989, handles design, maintenence and operation of Olivetti’s own and other companies’ computer systems in Italy and worldwide. It has units in Italy, Belgium, the UK and France and reported revenue of 88.8m pounds last year. Sema will pay 32.1m pounds now, another 22.6m pounds by December 31. Sema will also buy the Syntax trademark for 9.5m pounds. Syntax will continue to serve Olivetti, generating at least 49m pounds from its former parent and customers Olivetti introduces. That sum is guaranteed every year to the end of 2002.
