Geac Computer Corporation Ltd -
Geac concludes strategic review process
Geac Computer Corporation Ltd GAC
Shares issued 61,921,599 Mar 23 2001 close $2.900
Mar 26 2001 1:36:25
Mr. John Caldwell reports
Geac Computer has concluded the strategic review process regarding the sale of the entire company. Following an extensive process involving several interested parties and facilitated by CIBC World Markets and Lazard Freres, no formal bid for the company was received.
"Since we initiated the process, stock valuations have fallen markedly, particularly in the enterprise software sector. Combined with a tougher market for acquisition-related financing and the prospect of an economic slowdown, these circumstances had a negative impact on the potential sale of the entire company," noted John E. Caldwell, president and chief executive officer. "We do not believe that Geac's current stock price accurately reflects the company's long-term value. Today's announcement will remove customer uncertainty and enable management to implement focused plans to improve performance on a go forward basis," said Mr. Caldwell.
"As a matter of policy, the board continues to examine all ways to maximize shareholder value," added Mr. Caldwell. Other strategic alternatives continue to be considered, including the potential sale of some businesses. Over the next several weeks, significant additional cost reduction measures, including a substantial reduction of Geac's current staffing level, will be implemented to improve profitability.
"Our goal of placing customers requirements first will be the centre of our agenda. Our product and geographic diversity provide the platform to drive shareholder value," added Mr. Caldwell. "We will, however, be more focused on the industry sectors where our market presence and portfolio of solutions can most rapidly generate value for our customers and shareholders," concluded Mr. Caldwell.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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