Marking the end of a process which began early last year, Hewlett-Packard created two new companies from the existing organisation on Monday by completing the spin-off of Agilent Technologies.
The new company comprises over 43 000 employees worldwide and focuses on test, measurement and monitoring instruments, systems and solutions, and semiconductor and optical components. Agilent targets markets which include communications, electronics, life sciences and healthcare. In fiscal year 1999 the businesses comprising Agilent - then a subsidiary of HP - posted net revenues of more than $8.3 billion.
From a South African standpoint, Agilent is locally represented by three distributors which cover sales and support on the entire historical and forthcoming product range. These companies include Concilium Technologies (for test and measurement products), Chemetrix (a division of JSE listed Siltek Holdings, for chemical analysis products) and Siltek Health Care Solutions (a division of Siltek Holdings for medical analysis products).
Confirming the separation of Agilent, HP distributed 0.3814 of a share of Agilent Technologies Inc. common stock as a dividend on each share of HP common stock outstanding on 2 May 2000, the record date for the distribution.
On March 2, 1999, HP`s board of directors announced its decision to implement the above plan. Agilent Technologies launched its initial public offering of approximately 15.9 percent of its common stock on Nov. 18, 1999, with HP retaining 84.1 percent of Agilent`s common stock.
As a result of the distribution of shares of Agilent Technologies common stock, Agilent Technologies is now a fully independent company.
Holders of HP common stock will receive cash instead of any fractional shares of Agilent Technologies common stock that would otherwise be distributed to them in the distribution. HP received a private-letter ruling from the Internal Revenue Service stating that the distribution of whole shares of Agilent Technologies common stock will be tax-free to HP and its stockholders.
For further information relating to the distribution to holders of HP common stock, surf to www.hp.com/financials. Information on Agilent is available at www.agilent.com.
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