Intracom plans spin-off

Telecoms equipment maker Intracom plans to spin off three of its main business units by the end of the year to boost flexibility, its chief executive said yesterday. Chief Executive Officer Giorgos Deliyiannis told institutional investors at a presentation that the units – telecoms solutions, electronic defense systems, and IT services and telecoms operations – would be spun off into fully owned subsidiaries by the end of 2005. «As a holding company, we aim for greater flexibility in carrying out the development plans we have for each of the sectors in which we are active,» Deliyiannis said. «We aim at conquering a significant position in the market for fixed-line telephony and Internet, with an emphasis on the emerging market of broadband services and integrated IT and telecommunication services for businesses. As a multinational group based in Greece, we shall develop similar activities in neighboring countries at a later stage,» said the group’s president, Socrates Kokkalis. Analysts said the spin-offs could open the way for strategic investors and even facilitate a listing of the subsidiaries at a later stage. «It would be easier for Intracom to attract strategic investors for its different business activities,» said an analyst who declined to be named. The telecoms solution unit contributed to 55 percent of group sales in the first quarter of 2005, the IT division about 23 percent and the electronic defense systems unit 12 percent. Intracom said it would present its five-year business plan in January, 2006. (Reuters, Kathimerini)