.
- Focus on high-growth core business
- Expected cash inflow of a medium single digit million Euro amount would be used to repay SHS VIVEON AG's debt
- Notification of losses within the meaning of Section 92 (1) of the Aktiengesetz(AktG - German Public Limited Companies Act) due to the impairment of the Spanish subsidiary
SHS VIVEON AG, Europe's leading provider of customer management solutions, plans to sell its Spanish subsidiary SHS Polar Sistemas Informáticos S.L. Currently the Board of Directors is conducting far advanced negotiations. Therefore, the signature of a notarized sale agreement is expected within the next weeks. In executing this transaction, SHS VIVEON AG would successfully conclude its restructuring and reorientation program, which it has been driving since 2003, and in future it would fully focus on its core business of customer management. The expected proceeds from the sale, a medium single digit million Euro amount, would primarily be used to repay the existing convertible bonds leading to a predominant debt relief of SHS VIVEON AG.
SHS Polar recorded a total output of around EUR 34.3 million in the fiscal year 2007. This comprised both its traditional IT consulting business based on time and material contracts(total output 2007: EUR 18.1 million) and the opportunistic sale of hardware components (total output 2007: EUR 16.2 million). The plan to divest SHS Polar has been a result of SHS VIVEON AG's strategic reorientation and the continued downturn in output and earnings of the subsidiary stemming from the fact that the Spanish market continues to be highly competitive.
The SHS VIVEON Group would record correspondingly lower output in fiscal year 2008 as a result of the planned sale of its subsidiary. However, the continued core business is recording substantially double-digit growth rates and robust margins.
The expected proceeds from the sale of SHS Polar will be significantly lower than the values of the balance sheet positions for SHS Polar in the consolidated group accounts based on IFRS and the single-entity accounts based on HGB of SHS VIVEON AG. Therefore, the Board of Directors will adjust the valuation of SHS Polar in the half year accounts of SHS VIVEON AG as of June 30, 2008 to the attainable market price. This adjustment is made independently from the effective realization of the expected sale. As a result, SHS VIVEON AG will record one-time expenses in an anticipated amount of EUR 12 million in its consolidated financial statements based on IFRS as of June 30, 2008. The single-entity financial statements include analogous one-time expenses in an anticipated amount of EUR 8.5 million. As a result, SHS VIVEON AG's single-entity (HGB) financial statements as of June 30, 2008 include a loss totaling half of the share capital within the meaning of Section 92 (1) of the AktG. The Board of Directors will report this in line with its obligations to the Ordinary General Shareholder Meeting scheduled for August 26, 2008. Due to the planned transaction, the publication date for SHS VIVEON AG's half year financial report, which originally had been scheduled for August 14, 2008, has been postponed to August 28, 2008.
- Focus on high-growth core business
- Expected cash inflow of a medium single digit million Euro amount would be used to repay SHS VIVEON AG's debt
- Notification of losses within the meaning of Section 92 (1) of the Aktiengesetz(AktG - German Public Limited Companies Act) due to the impairment of the Spanish subsidiary
SHS VIVEON AG, Europe's leading provider of customer management solutions, plans to sell its Spanish subsidiary SHS Polar Sistemas Informáticos S.L. Currently the Board of Directors is conducting far advanced negotiations. Therefore, the signature of a notarized sale agreement is expected within the next weeks. In executing this transaction, SHS VIVEON AG would successfully conclude its restructuring and reorientation program, which it has been driving since 2003, and in future it would fully focus on its core business of customer management. The expected proceeds from the sale, a medium single digit million Euro amount, would primarily be used to repay the existing convertible bonds leading to a predominant debt relief of SHS VIVEON AG.
SHS Polar recorded a total output of around EUR 34.3 million in the fiscal year 2007. This comprised both its traditional IT consulting business based on time and material contracts(total output 2007: EUR 18.1 million) and the opportunistic sale of hardware components (total output 2007: EUR 16.2 million). The plan to divest SHS Polar has been a result of SHS VIVEON AG's strategic reorientation and the continued downturn in output and earnings of the subsidiary stemming from the fact that the Spanish market continues to be highly competitive.
The SHS VIVEON Group would record correspondingly lower output in fiscal year 2008 as a result of the planned sale of its subsidiary. However, the continued core business is recording substantially double-digit growth rates and robust margins.
The expected proceeds from the sale of SHS Polar will be significantly lower than the values of the balance sheet positions for SHS Polar in the consolidated group accounts based on IFRS and the single-entity accounts based on HGB of SHS VIVEON AG. Therefore, the Board of Directors will adjust the valuation of SHS Polar in the half year accounts of SHS VIVEON AG as of June 30, 2008 to the attainable market price. This adjustment is made independently from the effective realization of the expected sale. As a result, SHS VIVEON AG will record one-time expenses in an anticipated amount of EUR 12 million in its consolidated financial statements based on IFRS as of June 30, 2008. The single-entity financial statements include analogous one-time expenses in an anticipated amount of EUR 8.5 million. As a result, SHS VIVEON AG's single-entity (HGB) financial statements as of June 30, 2008 include a loss totaling half of the share capital within the meaning of Section 92 (1) of the AktG. The Board of Directors will report this in line with its obligations to the Ordinary General Shareholder Meeting scheduled for August 26, 2008. Due to the planned transaction, the publication date for SHS VIVEON AG's half year financial report, which originally had been scheduled for August 14, 2008, has been postponed to August 28, 2008.
