FiberCore Signs Agreement to Acquire Algar's Optical Fiber Manufacturing
Facility
CHARLTON, Mass., Apr 28, 2000 (BUSINESS WIRE) -- FiberCore, Inc. (Symbol FBCE).
FiberCore, a leading manufacturer of optical fiber and preform for the
telecommunication and data communications market, announced today that it has
signed an agreement with Algar S.A to acquire Xtal Fibras Opticas S.A, its
optical fiber manufacturing facility , located in Campinas, Brazil, for a cash
purchase price of $25 million.
"This acquisition will be a significant step forward for both FiberCore and
Xtal," said Dr. Mohd Aslami, President and CEO of FiberCore. "We have been
seeking to expand our capacity to meet increasing customer demand, and this
acquisition provides another strong building block upon which we can grow our
business and achieve our goal of increasing shareholder value. Xtal currently
has sales of approximately $25 million, primarily from single-mode optical fiber
in Brazil. With the integration of both FiberCore's and Xtal's technologies, we
expect manufacturing capacity to increase significantly. Investment in new
capital equipment will further increase production volume. Xtal currently enjoys
the largest market share in Brazil, at approximately 35%. We plan to increase
that position in Brazil, which is a rapidly growing market, as well as to export
product manufactured in Brazil to satisfy the requirements of our global
customers."
"Algar Group is selling Xtal as a result of a strategic decision, to divest from
product manufacturing facilities in telecommunications. We are focusing more and
more our business in the areas of telecommunication services," said Algar's CEO
Jose Mauro Leal Costa.
The Algar Group is one of the most important private conglomerates in Brazil
with 23 companies grouped around four divisions: telecommunications,
agribusiness, services and entertainment. Algar Telecom, the Group's holding
company for the activities in the area of telecommunication services, covers
through its subsidiaries a population of 36 million people in its area of
influence. Among its main subsidiaries is CTBC Telecom (Companhia de
Telecomunicacoes do Brasil Central), operating since 1954. Another company, ATL
(Algar Telecom Leste), is in charge for operating B band cellular phone in the
states of Rio de Janeiro and Espirito Santo adding more than 900,000 wireless
subscribers in its first year of operation.
The acquisition, which has a scheduled closing date of June 30, 2000, is subject
to satisfactory completion of due diligence, execution of definitive agreements
and other specified conditions. FiberCore has retained an investment banker to
assist in arranging the financing for the acquisition.
For more information about FiberCore: (www.FiberCoreUSA.com) Phone - (508)
248-3900 or by FAX - (508) 248-5588, eFax (603) 250-5369 or E-Mail
FiberCore@aol.com.
For more information about Algar Group: (www.algar.com.br) E-mail
algar@algar.com.br. Phone: 55-34-218-3101 / Fax: 55-34 212-0293
Except for the historical matters discussed above, the statements in this press
release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those projected as a result of certain
general economic and business conditions; ability to obtain required financing
loss of market share through competition; introduction of competing products by
other companies; changes in industry capacity; ability to obtain required
financing; dependence on a single manufacturing facility; pressure on prices
from competition or from purchasers of the Company's products; availability of
qualified personnel; the loss of any significant customers; and other factors
detailed from time to time in the Company's filings with the Securities and
Exchange Commission.
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
-0-
CONTACT: FiberCore, Inc.
Charles DeLuca, 508-248-3900
FBCE2CDL@aol.com
or
Algar Group
55-34-218-3101
algar@algar.com.br.
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
HARDWARE
NETWORKING
SOFTWARE
TELECOMMUNICATIONS
MERGERS/ACQ
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com |
