Nera ASA plans public listing of satellite communications business in early 2005

Nera ASA's board of directors has resolved to continue the process towards a possible demerger of the company's satellite communications business into a separate, publicly listed company.

Nera ASA's board of directors has resolved to continue the process towards a possible demerger of the company's satellite communications business into a separate, publicly listed company. The preliminary opinion of the board of directors is that the demerger should be carried out as a spin-off, where Nera's shareholders also become the shareholders of the new company. Nera's board of directors will consider plans for the demerger in October and aims for a listing in Q1 2005.

At the company's Capital Markets Day 26 May, Nera's board of directors announced that the company's management had been granted the mandate to assess a possible public listing of Nera's satellite communications business. The decision was based on discussions among the board of directors and management regarding strategic options for Nera's two main business areas, Satellite Communications and Transmission Networks, and the management's strategic assessment that the two main business areas would be best developed as separate structures.
 
"The development since 26 May confirm that for both of the two main business areas interesting structural constellations are more likely to emerge if the two business areas are cultivated separately. This will be part of the basis for our further considerations", commented Bjørn Ove Skjeie, CEO of Nera ASA.


Based on materials presented by the company's management, Nera's board of directors have resolved to continue the process of a possible demerger of Nera's satellite communications business area into a separate, publicly listed company. The board's preliminary assessment is that the demerger should be performed as a spin-off, where Nera's shareholders will also become the shareholders of the publicly listed satellite communications company. The board will consider a plan for the demerger in October, and aims to carry out the public listing in Q1 2005. The final choice of model and time frame for a demerger may be affected by other structural processes.