Unisys Plans to Sell Shares in Nihon Unisys Lim...
Unisys Corporation
Unisys Corporation (NYSE:UIS) today announced that it plans to sell the shares
it owns in Nihon Unisys Limited (NUL) of Japan. Unisys said that the sale of NUL
shares will not affect the relationship between the two companies in the
Japanese market. NUL will remain the exclusive distributor of Unisys hardware
and software products in Japan.
The sale is part of Unisys plan to divest non-core assets. The company intends
to use proceeds from the stock sale to fund its previously announced plans to
reduce its cost structure in line with its new, more focused business model.
'We are pleased to be able to continue our more than 50-year collaboration with
Nihon Unisys Limited to supply Unisys products to the Japanese market and at the
same time begin to fund the necessary actions to position Unisys for long-term
growth and profitability,' said Joe McGrath, president and CEO of Unisys.
Unisys currently owns approximately 28% of the shares in NUL, an information
technology services and product company publicly traded in Japan. NUL had annual
sales of $2.9 billion in 2005.
Unisys intends to sell its approximately 30.5 million shares of NUL stock and
expects to close the sale early next week. Assuming all the shares are sold,
Unisys expects to receive in excess of $350 million in cash from the sale.
The sales are subject to certain contingencies. Unisys will offer some of the
shares to NUL under NUL's recently announced open-market stock repurchase
program. Under this program, NUL will purchase its shares on a first-come,
first-serve basis, and there is therefore no guarantee all of the NUL shares
tendered by Unisys will be purchased. The sale of the remaining shares is
subject to the execution of a definitive agreement and satisfaction of customary
closing conditions.
About Unisys
Unisys is a worldwide technology services and solutions company. Our consultants
apply Unisys expertise in consulting, systems integration, outsourcing,
infrastructure, and server technology to help our clients achieve secure
business operations. We build more secure organisations by creating visibility
into clients' business operations. Leveraging Unisys 3D Visible Enterprise, we
make visible the impact of their decisions--ahead of investments, opportunities
and risks. For more information, visit www.unisys.com.
Forward-Looking Statements
Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. All forward-looking statements rely on assumptions and are
subject to various risks and uncertainties that could cause actual results to
differ materially from expectations. The risks and uncertainties associated with
this transaction are set forth above. A discussion of factors that could affect
Unisys future results is contained in periodic filings with the Securities and
Exchange Commission.
RELEASE NO.: 0314/8632
http://www.unisys.com/about__unisys/news_a_events/03148632.htm
Unisys is a registered trademark of Unisys Corporation. All other brands and
products referenced herein are acknowledged to be trademarks or registered
trademarks of their respective holders.
CONTACT: Unisys Corporation
Investor Contact:
Jim Kerr, 215-986-5795
Jim.Kerr@unisys.com
or
Media Contacts:
John Schneidawind, 215-986-2472
John.Schneidawind@unisys.com
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