French IT company Atos (ATOS.PA) spooked investors on Tuesday with a plan to split its operations and sell assets as well as the departure of CEO Rodolphe Belmer, sending its shares plunging by more than 25%.
The departure of Belmer, who took over in January, follows weeks of reports of board divisions over revamping the company.Belmer and the board clashed over the fate of cybersecurity unit BDS, sources close to the matter have said, as he was willing to sell the business while the board wanted to retain it.
Atos is deemed strategic by the French government for its high-tech assets such the manufacture of supercomputers and software used by the army and the finance ministry to manage tax collection. Former prime minister Edouard Philippe sits on its board. Belmer's departure was announced just an hour before a capital market day that investors hoped could restore confidence after a series of setbacks that has wiped out two-thirds of Atos's market value over the past year,
SPLIT-UP Atos plans to split into two publicly listed entities and said it had appointed two deputy CEOs, Nourdine Bihmane and Philippe Oliva, to lead each of these.
The split would be aimed at "unlocking value" as part of a broader plan that would cost an estimated 1.6 billion euros in 2022-2023, the company said.
Dubbed Evidian, these operations combined generated 4.9 billion euros in revenue in 2021, up by 5% from the previous year, and an operating margin of 7.8%.
The remaining part of Atos will include its declining and loss-making IT infrastructure management services, which had sales of 5.4 billion euros last year. Atos said it aimed to return to growth and profits for these activities by 2026.
Previously the boss of Vivendi-owned pay-TV station Canal+, Belmer had promised a new start for Atos after accounting errors and a failed attempt to acquire a U.S. company hit investor confidence.
The weakness of Atos's shares have made it vulnerable to takeover rumours. On Monday, the shares fell more than 10%, following a media report about its future strategy.
Sourced from Reuters
Written by Mathieu Rosemain