PARIS, Feb. 12 -- Alcatel and Amsterdam-based Draka announced they intend to combine their global optical fiber and communication cable businesses into a jointly owned company. Under their agreement, Draka would own 50.1 percent of the new company and Alcatel would own 49.9 percent.
Through the combination of Alcatel's assets with Draka's interest in Chinese optical fiber and fiber cable manufacturer YOFC would make the new company "the undisputed number one in China in fiber and fiber cables," Alcatel said, and it "would also be a leader in Europe and a major player in North America."
Draka said it intends to issue 150 million euros of new equity with the creation of the new company. This new equity will be underwritten by Draka's two largest shareholders, Flint Holding NV and Parcom Ventures BV. Alcate intends to contribute all its optical fiber and fiber cable assets to the new company, which would be accounted for as an equity company.
"With this announcement, we are making another important step in our strategy to focus on communication solutions," said Olivier Houssin, executive vice president of Alcatel. "This proposed transaction will allow Alcatel to benefit from an improved fiber cable capability in its fiber-to-the-home activity, thereby further strengthening its leading offering in broadband access."
In addition to fiber and fiber cable products, the new company would have a copper telecommunication and data communication cable product line.
The proposed combination, which has already received approval from Alcatel's board of directors and from Draka's supervisory board and board of management, is subject to customary regulatory and other approvals and is expected to be completed by the end of the second quarter of 2004.
For more information, visit: www.alcatel.com