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| Marconi plc Sells Its 50% Shareholding in General Domestic Appliances Holdings Limited for 121 Million British Pounds Sterling |
| MARCONI COMMUNICATIONS LOGO
Marconi Communications logo. (PRNewsFoto)[PM] WARRENDALE, PA USA | |||
LONDON, Dec. 21 /PRNewswire/ -- Marconi plc (Nasdaq: MONI; London) today announced that it has reached agreement to sell its 50 per cent shareholding in General Domestic Appliances Holdings Limited (GDA) to Merloni Elettrodomestici SpA (Milan: MERI), for a cash consideration of EURO 195 million (approximately 121 million British Pounds Sterling (pounds)). The transaction, which is subject to regulatory approval and other closing conditions, is expected to close before the end of the first calendar quarter of 2002. (Photo: http://www.newscom.com/cgi-bin/prnh/20000504/MARCLOGO ) In addition, and prior to completion of this transaction, Marconi confirmed that it will receive a dividend of 23 million pounds. This comprises the annual cash dividend associated with Marconi's stake in GDA, together with a special dividend relating to the proceeds from the sale by GDA of its subsidiary, GDA Applied Energy Ltd. Mike Parton, Marconi chief executive, said: "The agreement to sell our non-core interest in GDA helps us in our program to focus on our core communications business. With both this transaction and the recently announced sale of Marconi Commerce Systems, we look set to realise our 500 million pounds cash from disposals target by March 2002." General Domestic Appliances recorded consolidated pre-tax profits of 36 million pounds for the year ended 31 March 2001. 50 per cent of this amount was attributable to Marconi, which also recorded a goodwill amortisation charge in the Group consolidated accounts of approximately 2 million pounds. Marconi's share of net assets attributable to the GDA business as at 30 September 2001, totalled 92 million pounds -- comprising 50 per cent of the net asset value and including 15 million pounds of goodwill. Proceeds from the transaction will be applied to reduce Group net debt. About General Domestic Appliances General Domestic Appliances is the largest supplier of domestic appliances in the UK market and the largest service provider for the sector. The company designs, manufactures and services a wide range of general domestic appliances including: gas and electric cookers, washing machines, spin and tumble dryers, refrigerators and gas fires under leading brand names (Hotpoint, Creda, Cannon). General Electric Company owns the other 50 per cent shareholding in General Domestic Appliances. About Marconi Marconi has research and development facilities in 19 countries, manufacturing operations in 16 countries, and customers in over 100 countries. Marconi delivers innovative solutions that transform communications networks. Marconi plc is listed on the London Stock Exchange and Nasdaq under the symbol MONI. Additional information about Marconi can be found at http://www.marconi.com . About Merloni Merloni Elettrodomestici SpA. is one of the leading manufacturers of household appliances. The company sells its products under the tradenames Ariston, Indesit and Scholtes. Merloni sells its products in Italy, France, the United Kingdom, Germany, Portugal, the Netherlands, Spain and Russia. This press release contains forward-looking statements with respect to products, partners, customers, future growth and other matters. Please refer to the Form 20-F report and Form 6-K reports filed by Marconi plc with the United States Securities and Exchange Commission for a discussion of risks that could cause actual results to differ materially from such statements. All rights reserves. All brands or product names are trademarks of their respective holders. Contacts Marconi plc Name: David Beck/Wendy Timmons Joe Kelly Title: Bell-Pottinger Financial Public Relations Phone: +44 (0) 20 7861 3864 +44 (0) 207 306 1771 +44 (0) 20 7861 3890 joe.kelly@marconi.com Marconi plc Name: Heather Green Title: Investor Relations Phone: +44 (0) 207 306 1735 heather.green@marconi.comSOURCE Marconi plc
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Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000504/MARCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Heather Green, Investor Relations,
+44-207-306-1735, or heather.green@marconi.com, or Joe Kelly,
Public Relations, +44-207-306-1771, or joe.kelly@marconi.com,
both of Marconi plc; or David Beck, or Wendy Timmons, both of
Bell-Pottinger Financial, +44-20-7861-3864, or +44-20-7861-3890,
for Marconi plc
