Psion Board asks shareholders to vote for the sale to Nokia
Posted on 8-Mar-2004 21:44
Filed under: News
On 9th February 2004, Psion announced that it had agreed terms for the sale of its 31.1% stake in Symbian to Nokia for a series of payments estimated at £135.7m, including amounts which depend on the number of devices containing Symbian OS sold by licensees in 2004 and 2005.
Now the Board is writing to shareholders ahead of the company’s EGM, due to be held on 12th March. In this letter, the company reiterates the Board’s recommendation to shareholders to vote in favour of the proposed disposal of its stake in wireless OS business Symbian.
On 4th March, Psion’s largest shareholder, Phoenix Asset Management Partners Ltd. announced its intention to vote its holding of approximately 13.5 per cent against the proposed disposal. In its announcement, Phoenix claimed that significantly greater value could be created for Psion shareholders through an IPO of Symbian.
Phoenix describe this as “a less conservative route, with greater risks and uncertainty in the expectation of higher returns”.
On its turn, the Board of Psion says that it is not appropriate for the company to take such a speculative view, but, rather, that it should take a measured view of all the issues involved. The Board disagrees with the Phoenix view that the conditions for an IPO of Symbian have been met and claim that on the basis of proxy votes received so far, the majority of independent private shareholders are supporting the Board.