Whole story. with m-systems I don't know if this is good or bad. The fact that they are focusing is good. The effect on P&L I don't know, nor whether it is an excuse for another couple of bad quarters. Perhaps others can interpret better.
TEL AVIV (Dow Jones)--M-Systems Flash Disk Pioneers Ltd. (FLSHF) intends to
restructure its interests in Taiwan, separating its core business - data storage
using Flash memory - from other, non-core businesses.
In a press release Wednesday, M-Systems said it signed a letter of intent with
certain former shareholders of C-One Technology Corp., its Taiwan unit. C-One
will transfer its Flash-related technology and business to M-Systems Asia Ltd.,
a newly incorporated Taiwanese company owned by M-Systems.
C-One will then focus on the non-Flash business. The company expects the
restructuring to be completed by March 31.
M-Systems will allow its equity interest in C-One to be diluted down to 19.9%
or less by new investors in C-One (which may include prior C-One shareholders).
If, by March 31, the amount raised isn't enough to reduce M-Systems ownership in
C-One to 19.9%, M-Systems may exchange the C-One shares it owns in excess of
19.9% for shares of M-Systems. The exchange rate would be 1 C-One share for 0.11
M-Systems share.
Also, during the year beginning on the second anniversary of the
restructuring, M-Systems may exchange all of its remaining C-One shares for
M-Systems shares at the same exchange rate. If M-Systems exercised its 'put'
options in full and exchange all its C-One shares for M-Systems shares, it would
receive a total of 788,700 M-Systems shares. All 788,700 M-Systems shares are
being held in escrow.
(MORE) DOW JONES NEWS 01-28-98
11:39 AM
-- 11 39 AM EST 01-28-98
:TICKER: FLSHF
:SUBJECT: ISRL TAIW COMP MNA
M-Systems/Divest -3: M-Systems Bought C-One In 1st Half '97
Dow Jones News Service via Dow Jones
M-Systems Flash Disk Pioneers Ltd. (FLSHF) acquired C-One and its Pretec
Electronics Corp. U.S. unit, in the first half of 1997 for 1.1 million new
M-Systems shares and $1 million cash.
At the time of the acquisition, C-One was completing the development of
advanced ATA Flash cards and compact Flash cartridges. In July 1997, M-Systems
unveiled the ATA Flash PC Card 2000 and the Compact 2000 Flash Disk.
C-One also has an active non-Flash business. Since the acquisition, M-Systems
has sought to divest the non-Flash business segment. M-Systems said Wednesday's
agreement will intensify its focus on its core Flash business while allowing it
to realize a return on the effective disposition of its non-Flash business.
M-Systems Flash Disk Pioneers Ltd. (FLSHF) develops, manufactures and markets
software and hardware data storage systems based on Flash memory. |
