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Market forces delay Agfa demerger

Thursday, 02 August 2007
By Print 21 Online Article

The plan to split the company into three separate entities – graphics , healthcare and specialty products – was derailed after a drop in earnings of nearly 29 per cent to $. This proved to be well below the analysts’ expectations and stymied the proposed demerger for six months.

According to a report on an Agfa statement said; In view of the second-quarter results, the board of directors decided to dedicate all management resources to operational improvements. It therefore accepted the recommendations made by its external adviser to implement the demeger based on the closing balance sheet of 31 December 2007. The listing of the independent companies will take place before the summer of 2008.

The original timetable called for the company to be broken up by the end of this year.

The results posted by the graphics division proved most disappointing, down 5.7 per cent to $ for the quarter and 6.9 per cent for the year. According to the company this was caused by a rapid decline in the sale of film-based analogue prepress equipment and the closure of unprofitable operations.

Agfa shares dropped more than 13 per cent on the news of the postponement. Despite having received expressions of interest from buyers for parts of the business the Agfa board has decided to press ahead with the demerger.

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