Luxembourg, 28 January 2011 - Transcom WorldWide S.A. announces that its French subsidiary, Transcom Worldwide (France) SAS, is presenting to its works council a divestment project of two French sites with the view to improving the group’s competitiveness.
Transcom Worldwide (France) SAS has received two offers, one from B2S contemplating the acquisition of its Roanne site and business (278 permanent employees) and the other from arvato, a division of Bertelsmann, contemplating the acquisition of its Tulle site and business (213 permanent employees).
The contemplated transactions will be reflected in Transcom WorldWide S.A.’s financial results for the fourth quarter of 2010 as a charge of €19.4 million. This amount includes a charge of €10.0 million which corresponds to the funding provided to the bidders in order to manage the takeover as well as the transition costs, and a charge of €9.4 million related to the provisioning of 3 contracts which are either discontinued or becoming onerous as a consequence of this operation.
The operation will result in a €7.9 million cash outflow, which will be disbursed at the time of the transfer of the sites.
The submitted project will be reviewed by the employee representatives within the framework of an information/consultation procedure and is part of the ongoing transformation and streamlining of Transcom’s French operations in order to address the current overcapacities, reduce losses and restore profitability.
The transfer of the sites will take place once the information/consultation process is fully completed. This is expected to occur in the next three to four months. As a consequence, the revenue in Transcom’s French operations will reduce by circa €7 million in the eight to nine months of 2011 (€13 million on a full year basis). Losses are estimated to be reduced in the range of half the current run rate.
Transcom remains committed to France and its client base in the country. The intended transactions will contribute to the adjustment of the existing overcapacities in France and hence allow management to focus its resources and capabilities towards developing a strong long-term presence in the French market.
Please note that a special telephone conference will be held at 09:30 CET / 08:30 UK on January 28. Please call in a few minutes before the conference starts in order to register your attendance.
Call-in details (quote 3154512 when dialling into the conference):
SWEDEN: +46 (0) 8 5051 3785
UK: +44 (0) 20 7138 0825
USA: +1 212 444 0481
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For further information, please contact:
Pablo Sanchez–Lozano, President and CEO +352 27 755 000
Aïssa Azzouzi, CFO +352 27 755 021
Stefan Pettersson, Head of Investor Relations +46 70 776 80 88