Danka Business Systems PLC Announces Sale of New Zealand Business.Business Editors ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Oct. 22, 2001 Danka Business Systems PLC (Nasdaq:DANKY) today announced that it has entered into an Agreement to sell certain assets of its New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. subsidiary, Danka New Zealand Limited, to Minolta New Zealand Limited ("Minolta"). Under the terms of the sale, Minolta will pay approximately $1.2 Million, for the assets, which will be offset by Danka's retention of certain trade payables. Danka will also retain certain accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . Danka will use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the sale to reduce debt under its newly executed Senior Bank Credit Facility. The sale is expected to close on or about November 2, 2001. David Berg David Brandt Berg (18 February, 1919 - October 1994), frequently known by the pseudonym Moses David, was the founder and leader of the religious movement formerly called Children of God, now called "The Family International". , Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Danka's Canada, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia Pacific Regions, stated: "This disposition is consistent with the Company's strategic mission to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose non-performing assets. Danka New Zealand is in the unenviable position of competing against the manufacturer of its products in New Zealand and was maintaining insufficient market share. The operation constituted a drain on the Company's Australian business, on which we will be able to devote more attention and focus to ensure its continued operational improvement. I am certain the business will prove much more strategic to Minolta than to Danka." Danka's Chief Executive Officer, Lang Lowrey, added: "The Company continues to divest itself of assets, like the New Zealand business, which have had a negative operational impact on the overall Company. It simply made no sense for Danka to remain in this market. We are pleased with the terms of this transaction and believe it will be a win for both Danka and Minolta, as well as for the customers. We will continue to evaluate all opportunities for further debt reduction and enhanced performance." Danka Business Systems, PLC, headquartered in London, England, and St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. , is one of the world's largest independent suppliers, by revenue, of office imaging equipment and related services, parts and supplies. Danka provides office products and services in 30 countries around the world. For additional information about copier, printer and other office imaging products from Danka, visit the web site at: http://www.danka.com. Certain statements contained in this press release, including statements related to Danka's future business and financial performance, are forward-looking. Such statements reflect the current views of Danka with respect to future events and are subject to certain risks, uncertainties and assumptions, including the possibility that the sale of the New Zealand business will not close as expected, or at all, that could cause actual results to differ materially from those reflected in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Readers are cautioned not to place undue reliance on these forward looking statements, which reflect management's analysis only as of the date they are made. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion