ICL has announced that its majority shareholder, Fujitsu, has acquired Nortel Networks` (formerly Northern Telecom) 9.9% interest in the company. Following this transaction Fujitsu now owns 100% of ICL, which has confirmed its intention to seek a listing on the London Stock Exchange in 2000.
Under the terms of an agreement reached in 1996, Nortel retained the option to sell all or part of its holding to Fujitsu at any time during the ensuing two years. Nortel Networks has exercised its option which became effective on 30 September.
Commenting on the transaction Keith Todd, ICL`s chief executive, said: "Nortel Networks has been a supportive shareholder in ICL for many years and we have benefited from the relationship. However, we naturally understand their wish to focus their investments on the global telecommunications market.
"Our working partnership with Fujitsu has always been a critical element in our strategy for developing ICL into a leading international supplier of IT systems and services, and we welcome their increased commitment to the group. This simplification of our ownership structure is also an important step towards meeting our objective of flotation in 2000."
Naoyuki Akikusa, president of Fujitsu, added: "We appreciate the support Nortel Networks has given to ICL over the years. We are committed to supporting Keith Todd and his team as they complete ICL`s transformation into a leading systems and services company, positioning ICL as an important member of the Fujitsu Group in its global strategy."
Bill Kerr, senior vice president finance and treasurer, Nortel Networks, commented: "Since the ICL shares have become a non-strategic holding for us, it made sense that ICL`s majority shareholder should take full control of the company as it prepares for flotation and we wish them every success."
Editors note
ICL
ICL is a leading supplier of IT systems and services. Operating in over 70 countries and employing over 19,000 people, the Group`s revenues for 1997 were lb2,477.1 million, generating a pre-tax profit of lb30.0 million. The company implements IT systems for major projects and provides innovative services to a range of industries covering amongst others, retail, finance, travel, telecoms and utilities together with education and local and central government sectors. Its services include outsourcing, helpdesks, network services, inter/intranets, electronic commerce, interactive kiosks, smart card systems, digital cities and web sites. ICL plans to relist on the stock market in 2000.
ICL`s website: http://www.icl.com.
Fujitsu
Fujitsu Limited is a leading provider of information technology products and solutions for the global marketplace. Founded in Japan in 1935 as a telephone equipment maker, the Fujitsu Group had consolidated revenues of $37.7 billion in the fiscal year ended March 31,1998.
With over 500 group companies, including Amdahl and ICL, Fujitsu is one of the world`s largest suppliers of computers and information systems solutions, telecommunications and semiconductor products, software and services. The Fujitsu Group has over 180,000 employees worldwide and operations in more than 100 countries.
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