Ericsson divests its power cable operation to NKT Cables
(firmenpresse) - STOCKHOLM, SWEDEN -- (Marketwired) -- 05/03/13 --
* Ericsson has signed a conditional agreement with Danish company NKT
Cables
to divest its power cable operation
* As a result of the agreement, about 320 employees and consultants,
primarily
based in Sweden, will transfer to NKT Cables
* The value of the transaction is SEK 250 million and closing is expected
during the beginning of the third quarter, 2013
The transaction is subject to relevant regulatory approvals.
NKT Cables is one of the largest power cable manufacturers in Europe.
Ericsson
(NASDAQ: ERIC) believes that the power cable operation that currently
resides
within business unit Networks has potential to realize greater leverage and
scale within NKT Cables where it will be core business.
The net sales for the power cable operation in 2012 was approximately SEK
1.5
billion.
The current best estimate is that the transaction will generate a net loss
of
approximately SEK -100 million and will, with current time plan, negatively
impact business unit Networks' operating income in the third quarter, 2013.
As a result of the agreement NKT Cables will take over a factory in Falun,
Sweden.
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Ericsson is a world-leading provider of communications technology and
services.
We are enabling the Networked Society with efficient real-time solutions
that
allow us all to study, work and live our lives more freely, in sustainable
societies around the world.
Our offering comprises services, software and infrastructure within
Information
and Communications Technology for telecom operators and other industries.
Today
40 percent of the world's mobile traffic goes through Ericsson networks and
we
support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180
countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.
In
2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion).
Ericsson
is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
Ericsson divests its power cable operation to NKT Cables:
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Datum: 03.05.2013 - 01:34 Uhr
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