Cell Network sells French company
Cell Network sells French company Cell Network transfers all its shares in Cell Network France to the former owners. "This is a logical step in our ongoing Push for profit action plan," says CEO Niklas Flyborg. "Among other things, it means that we are selling or closing units that are not deemed able to achieve profitability within a reasonable time." With the deal Cell Network will be able to reduce its future financial commitments by up to SEK 35-40 million, and avoid a considerable loss for the second half of the year. The sale means capital losses of SEK 85 million, already allocated in the balance sheet at the end of June through goodwill being written down to zero. The deal is covered by an act on private placements known as the Leo Act, meaning that it is conditional upon finding approval from a general shareholders' meeting of Cell Network. Earlier this year, Cell Network sold its Swedish subsidiaries, Cell Interactive TV, Propello and Journalistgruppen, plus German subsidiary, Aperto. In Sweden, the Västerås and Örebro offices have been closed, the e-learning unit in Gothenburg has been sold, closures have been made in Borlänge and Malmö, and Cell Network's head office has been rationalised. In Spain, half the staff have been laid off and closures have been made in Norway. "The new Cell Network, for which we are in the process of laying the foundation, is a profitable and focused consultancy company focusing on the market for business development, IT/Internet and telecommunications," Niklas Flyborg concludes. For further information please contact: Niklas Flyborg, CEO Cell Network, tel: +46 70 594 96 78 Anders Lugn, Director of Corporate Communications Cell Network, tel: +46 70 608 87 80 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/07/31/20010731BIT00130/bit0002.doc http://www.waymaker.net/bitonline/2001/07/31/20010731BIT00130/bit0002.pdf