Computacenter Regulatory News (CCC)

30 Aug 2005 11:24

Computacenter PLC30 August 2005 Update on Acquisitions - Germany and Austria Further to the German and Austrian acquisition update contained in note 14 ofthe 2004 Annual Report and Accounts and the press release dated 19th May 2005 onthe outcome of the work of the independent Expert, PricewaterhouseCoopers,Computacenter plc is pleased to announce the resolution of the tax assets claimnoted as a contingent liability in the Accounts of Computacenter plc. On the 15th October 2003 the vendors claimed that the Group had breached aprovision of the German Purchase Agreement concerning an adjustment relating totax assets, and issued a claim for EUR52,165,292 (£36,892,800) plus interest,for upfront payment of the tax assets as opposed to payment as the assets areutilised. Computacenter is pleased to announce that following a recentarbitration hearing, Computacenter has reached an agreement with the vendorsunder which the vendors claim has been withdrawn and Computacenter will purchasethe tax assets outright. Although the arbitral tribunal did not render a finaldecision on the merits of the tax claim, it proposed a settlement which did notallocate value to this claim. The Net Asset Value claim of £32,448,000 as noted in the 19th May 2005 pressrelease is included as a receivable in debtors at 31st December 2004, the netresult of this agreement is that Computacenter will shortly receive EUR40,000,000. The upfront purchase of the tax assets will result in a deferred tax asset on the Group balance sheet of approximately £8m which will be utilizedas profits are made in Computacenter Germany. Enquiries: Computacenter plc:Tony Conophy, Finance Director 07801 453800 This information is provided by RNS The company news service from the London Stock Exchange