Activist investors urge fellow Xerox shareholders to oppose Fujifilm deal

Xerox said in a statement that it had considered several other options in detail and concluded that the combination with Fuji Xerox is the “best path to create value” for the company. (Reuters)
Updated 13 February 2018
0

Activist investors urge fellow Xerox shareholders to oppose Fujifilm deal

TOKYO: Xerox’s plan to sell itself to Japan’s Fujifilm Holdings has come under further pressure with Carl Icahn and Darwin Deason urging fellow shareholders to oppose the $6.1 billion deal.
The activist shareholders, who own a combined 15 percent of the US printer and copier maker, said the agreement dramatically undervalued Xerox and criticized the deal structure, which calls for the US firm to be combined into the Fuji Xerox joint venture, as “tortured (and) convoluted.”
“We urge you – our fellow shareholders – do not let Fuji steal this company from us,” Icahn and Deason said in an open letter.
They added there was still great opportunity for Xerox to create “enormous value for shareholders, and it does not involve selling control to Fuji without a premium.”
Seeking a firmer footing amid waning demand for office printing, the two firms agreed to a deal under which their existing joint venture Fuji Xerox will buy back Fujifilm’s stake in it for about 75 percent for around $6.1 billion (SR22.87 billion).
Fujifilm will then use those proceeds to purchase 50.1 percent of new Xerox shares.
Xerox said in a statement that it had considered several other options in detail and concluded that the combination with Fuji Xerox is the “best path to create value” for the company.
Fujifilm said in a separate statement that the planned deal “represents compelling strategic and financial value for Xerox shareholders.”
“The combined company will create a strong business foundation under a globally unified management strategy and provide new value by leveraging Fujifilm’s technological resources,” the Japanese company said.


UAE’s Network International shrugs off Brexit to list shares in London

Updated 12 min 35 sec ago
0

UAE’s Network International shrugs off Brexit to list shares in London

  • The planned share sale comes at an uncertain time in the UK
  • The company, which operates hospitals in the Middle East, was said to be also considering listing in the US or Singapore

DUBAI: Network International, the UAE payments processor, has committed to a London IPO next month in what would be the UK’s first big share sale of the year.
The company intends to have a free float of at least 25 percent and admission to the London Stock Exchange is expected to take place in April, Network International said in a regulatory filing on Thursday.
The planned share sale comes at an uncertain time in the UK where there is still no clarity around whether Britain will leave the EU or not at the end of the month.
VPS Healthcare, the Abu Dhabi-based hospital operator, is reconsidering plans to list in London due to uncertainty surrounding Brexit, Bloomberg reported on Thursday citing a person familiar with the matter.
The company, which operates hospitals in the Middle East, was said to be also considering listing in the US or Singapore.
Emirates NBD, Dubai’s biggest bank, owns 51 percent of Network International while Warburg Pincus and General Atlantic jointly own the rest.
The share sale will be a key test of investor demand for new listings in London after a subdued 2018 across most European markets.
“Volatility has continued in recent months, driven by the uncertainty around trade between the US and China, the wider geopolitical climate and the potential end of the current bull run,” said Peter Whelan, partner and UK IPO Lead at PwC in a recent report.
“We are seeing a healthy number of companies preparing for an IPO in 2019 despite the ongoing Brexit negotiations which have clearly impacted IPO activity on the London market.”
The payment processor reported earnings of $298 million last year according to its website, up from $262 million a year earlier. It does not disclose net income figures.
The company handles digital payments across the Middle East, which generate three quarters of its total earnings.
Last year it processed some $40 billion in payments for more than 65,000 merchants.
Its key markets in the region include the UAE and Jordan it says that Saudi Arabia offers “significant opportunities.” It also offers services in 40 African countries with Egypt, Nigeria and South Africa being its most important segments on the continent.