Cendant Corporation Completes Sale of Hebdo Mag International for Approximately $510 Million
Company Will Realize After Tax Book Gain of Approximately $250 Million in Fourth Quarter
December 15, 1998 07:56 AM
NEW YORK, Dec. 15 /PRNewswire/ -- Cendant Corporation CD today announced it has completed the sale of its Hebdo Mag International subsidiary to a company organized by Hebdo management for approximately $510 million, including approximately $375 million in cash and 7.1 million shares of Cendant common stock.
The sale of Hebdo Mag is part of a program by Cendant to sell non-core assets, focus on the Company's strategic business model, repay debt and repurchase stock. Cendant previously announced that it has agreed to sell its consumer software business, Cendant Software, to Havas SA, a subsidiary of Vivendi SA for up to $1 billion.
The Company expects to use the cash proceeds from the sale of Hebdo Mag to repurchase stock and retire indebtedness. The sale of this discontinued operation will generate an after-tax book gain of approximately $250 million, or about $0.28 per share, in the fourth quarter of 1998.
Cendant's Chairman, President and CEO, Henry R. Silverman, stated: "We are pleased to complete the sale of Hebdo Mag on terms which will be accretive to Cendant's 1999 earnings. As we continue to sell non-core business units where we have no comparative advantage, we are sharpening the focus on our strategic model, which will simplify our business and enhance shareholder value. We wish Hebdo Mag success in its future as an independent company."
Cendant CD is one of the world's premier providers of consumer and business services. The Company operates in three principal segments: Travel Services, Real Estate Services and Alliance Marketing. In Travel Services, Cendant is the leading franchiser of hotels and rental car agencies worldwide; the largest provider of vacation exchange services; a leading fleet management company; the UK's largest private car park operator; and a leading motorist assistance group in the UK. In Real Estate Services, Cendant is the world's largest franchiser of residential real estate brokerage offices; a major provider of mortgage services to consumers; and a global leader in corporate employee relocation. In Alliance Marketing, Cendant provides access to insurance, travel, shopping, auto, and other services, primarily through direct marketing to customers of its affinity partners. Headquartered in Parsippany, NJ, the company has more than 40,000 employees and operates in over 100 countries.
SOURCE Cendant Corporation
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