Cap Gemini SA will increase its interest in the outstanding share capital of its Benelux subsidiary, Cap Gemini NV, despite failing to meet its contingency target. The Paris, France-based computing services firm will acquire the 12,181,444 shares tendered in response to public offer of June 16, 1999, increasing its interest in its Utrecht, Netherlands-based subsidiary from 56.4% to 84.2%, some way below its planned 95% stake.
Cap will issue 5,413,976 new shares, on the basis of four newly issued ordinary shares of Cap Gemini SA for nine ordinary shares of Cap Gemini NV, Cap’s only listed subsidiary. The period of acceptance of the offer lasts until August 31, 1999, giving time for the remaining minority shareholders to take part. Around 10% of the outstanding shares are owned by Joop van Oosterom, a former president of Cap Gemini NV, who has been chasing a better offer despite the bid representing a 28.1% premium to Cap weighted average share price on the date of the announcement. Cap claims not to be disappointed at the shortfall.
Cap Gemini NV, with 1998 revenues of FFr4,294m ($675m), is Cap’s most profitable unit, mainly arising from the greater proportion of consulting and application development projects undertaken. The share acquisition will help Cap free personnel from the Benelux unit to assist the parent company’s effort to expand in Germany. Cap will also be able to tap the subsidiary’s expertise in the retail sector. Cap Gemini NV is listed on the Amsterdam Stock Exchange.
