Amsterdam-based Getronics put the Human Resources Solutions (GHRS) division up for sale six weeks ago, when it announced it would aim to reduce its debt burden through asset sales rather than a shareholder-opposed debt-for-equity swap. The company has to raise more than 550m euros ($604m) to repay two convertible bonds due in early 2004 and early 2005.
The value of the sale of the payroll division surpassed Getronics’ earlier expectations of 300m euros ($329m), which is almost twice Getronics’ own current market capitalization. Getronics said it would yield a book gain of 270m euros ($296m) from the sale, which it expects to close on June 1, 2003.
The GHRS division employs 650 staff that process some two million salary slips per month in the Netherlands for 4,200 clients including ABN AMRO, TPG and UWV. It made a profit before interest, tax, depreciation and amortization of 35m euros ($38m) on revenue of 95m euros ($104m) in full-year 2002.
Source: Computerwire
