Press Release Archive
Thursday, 15 December 2005
First Repeated Meeting of the Shareholders Extraordinary General Assembly, held on December 15 2005
INTRACOM expects to achieve a strong growth in 2006 Important announcements by INTRACOM Chairman, S. Kokkalis
The First Repeated Extraordinary General Meeting of Shareholders took place today at INTRACOM headquarters. During the Meeting, the following resolutions and announcements were approved and made respectively:
- There was unanimous approval for the IT Services sector spin-off and its transfer to INTRACOM's subsidiary company "DATABANK".
- There was unanimous approval for the change of Company activities and its general occupation with: (a) participation in Greek or foreign companies and businesses of any kind that have been established or will be established, regardless of their corporate objective, (b) legal investments in general, especially on company or portfolio acquisitions and on participation in other company share capital increases; and, (c) the provision of consulting and services to any physical or legal entity in the fields of general management, information technology, financial management, as well as in tax and accounting issues including the undertaking of studies, gathering, processing and holding of data and information of every kind and its profitable disposal to third parties.
- There was unanimous approval for the amendment of the Company's corporate name - according to the above - to "INTRACOM HOLDINGS S.A."
- The Chairman of INTRACOM Group, Mr. Socrates Kokkalis, referred to the company's course during 2005, and the strong growth prospects that are expected to be achieved in 2006. As Mr. Kokkalis explained, the company's transformation into a holdings company and the establishment of three new spin-off companies was necessary in order for each new company to achieve better flexibility, autonomy and technology know-how in their respective market segments. This will enable them to achieve a better and faster expansion and growth in the modern competitive business environment. Mr Kokkalis emphasised that the company continues to focus for its future strategic development into the international markets, as they present more attractive business prospects and opportunities. INTRACOM has already a dynamic penetration and presence in countries of the wider geographical area, and competes successfully with leading international companies in the field. As a result, 50% of the new contracts that the company has signed are derived from its international activities abroad.
- Mr. Kokkalis was optimistic about 2006 and stressed that the new business strategy will drive to higher results in the next year. The establishment of the three new spin-off companies and the new business activity of telecom services provision constitute the most important strategic decisions for the Group's development. He mentioned that a series of important discussions with international strategic partners and investors are proceeding satisfactorily. As far as the Russian company SISTEMA -the third largest telecom organization in Europe, in terms of its subscriber base- is concerned, the discussions are expected to be completed soon with satisfactory results. In addition, Mr. Kokkalis said that just recently the local authorities approved and allowed the petition on the acquisition of control over the company "Hellas On Line" (HOL) by INTRACOM -a move that will enable INTRACOM to proceed with the acquisition of 100% HOL's share capital. At the same time, discussions with other telecom services providers are taking place, and expected to be soon completed and to lead in the establishment of a new large alternative telecommunications provider. Mr. Kokkalis pointed out that all the above are in accordance with the Group's overall business strategy as it has been first announced at the presentation for the Association of Greek Institutional Investors that took place last September at the company's premises in Peania. At present, more information about these activities will not be disclosed. Announcements will be made when discussions are concluded.
- Mr. Kokkalis referred to the recent acquisition of the Turkish mobile operator TELSI? by the UK-based telecom company VODAFONE, for the price of $4.56 billion. INTRACOM is considering the option to acquire up to 10% of TELSIM's share capital from VODAFONE
- INTRACOM's Chairman also discussed an important issue for the Greek exporting industry: the necessity for immediate Government support. Mr. Kokkalis underlined that to the contrary of Greece, foreign government officials, political figures, ambassadors and public administration executives from other countries (such as the USA, UK, France, Germany, etc) are systematically promoting abroad their national economic interests and business affairs to support their local industries. By their actions they target to raise business opportunities for their countries and to create domestically more new job positions. Greek Government and private corporations should work closely together, Mr. Kokkalis said, under a well-organized strategic plan, to promote and support the Greek companies' international activities -a must in order to increase exports and to compete successfully in today's international business arena.
- Last but not least, Mr. Kokkalis referred to the recent growing competition by Chinese companies in the field of telecom systems and products. Chinese industries enjoy partial government financing in doing business abroad. Besides, different conditions exist in their daily operations. All these make it impossible for the Greek companies to compete at equal terms. Today, Greek organizations are seriously considering the possibility of acquiring Chinese equipment and products, while at the same time ignore internationally acclaimed Greek companies. Such a decision will eventually lead to the detriment of the Greek industry overall, considering that it will delay the development of domestic companies and will gradually contribute to the reduction of job positions in the country.
INTRACOM was founded in 1977, listed on the Athens Stock Exchange since 1990 and included in the FTSE/ASE-20 LargeCap index. INTRACOM Group has 5.450 employees and offers its products and services in 60 countries all over the world, focusing on European Union, N. Africa, the M. East and the USA. INTRACOM, besides Greece, operates subsidiaries in 16 countries.